Work Shown

Tundra Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
1 Compute the margin for Tundra Services Company. (Round your answer to 2 decimal places. Omit the “%” sign in your response.)
2 Compute the turnover for Tundra Services Company. (Round your answer to 2 decimal place.)
3 Compute the return on investment (ROI) for Tundra Services Company. (Round your intermediate calculations and final answer to 2 decimal places. Omit the “%” sign in your response.)
5. BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below
The entrepreneur who founded the company is convinced that sales will increase next year by 130% and that net operating income will increase by 360%, with no increase in average operating assets. What would be the company’s ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the “%” sign in your response.)
“A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be indicated by a minus sign. Round your answers to the nearest whole number. Omit the “”$”” and “”%”” signs in your response.)

“Selected sales and operating data for three divisions of three different companies are given below:

Division A Division B Division C
Sales 5400000 9400000 8500000
Average operating assets 1080000 4700000 1700000
Net operating income 243000 799000 148750
Minimum required rate of return   14.00% 17.00% 11.00%
“Selected sales and operating data for three divisions of three different companies are given below:

“Compute the return on investment (ROI) for each division, using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the “”%”” sign in your response.)

Compute the residual income for each division. (Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
Assume that each division is presented with an investment opportunity that would yield a rate of return of 16%.
If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?
“If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?