Eber Wares is a division of a major corporation. The following

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%

File name: Eber Wares .doc File type: .doc PRICE: $6