Calculating division's margin, turnover, return on investment (ROI), residual income.
Ebel Wares is a division of a major corporation. The following data are for the latest year of operations:
|
Sales
|
$29,120,000
|
|
Net Operating Income
|
$1,514,240
|
|
Average operating assets
|
$8,000,000
|
|
The company's minimum required rate of return
|
18%
|
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
d. What is the division's residual income?