Eber Wares is a division of a major corporation. The following
data are for the latest year of operations.
Sales $30,000,000
Net Operating income $1,170,000
Average operating assets $8,000,000
The company's minimum required rate of return 18%
Required:
i. What is the division's margin?
ii. What is the division's turnover?
iii. What is the division's ROI?
iv. What is the division's residual income? (Points : 15)
TUTORIAL PREVIEW
i) Division’s Margin =
Net operating income / Sales
= $1,170,000 / $30,000,000 = 3.9%CLICK HERE FOR SOLUTION
