Eckels Wares is a division of a major corporation. The following data are for the latest year of operations:
Sales $24,900,000
Net Operating Income $1,319,700
Operating Assets, 1/1/2012 $6,200,000
Operating Assets, 31/12/2012 $5,800,000
The company's minimum required rate of return 12%
Required:
Compute the following for the year 2012:
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?