Accounting records from Division A, Alpha Manufacturing Company indicate the following:
Required:
1. Compute the return on sales (ROS) for Division A. (Round answer to one decimal point.)
2. Compute the asset turnover (AT) for Division A.
3. Compute return on investment (ROI) for this division, using answers to parts (1) and (2). (Round answer to two decimal points.)
4. Compute residual income (RI) for Division A.
5. Describe how Alpha Manufacturing would determine whether or not to invest in any particular project in the future.
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