Eber Wares is a division of a major corporation. The following data are for the

Question

Eber Wares is a division of a major corporation. The following data are for the latest year of operations:

What is the division%u2019s margin? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

What is the division%u2019s return on investment (ROI)? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

What is the division%u2019s residual income? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

  Sales $ 31,000,000   Net operating income $ 1,176,000   Average operating assets $ 7,610,000   The company%u2019s minimum required rate of return 17.9 %

Explanation / Answer

i. What is the division's margin? =1,176,000 /31,000,000 = 3.8% answer

ii. What is the division's turnover? = 31,000,000 answer

iii. What is the division's return on investment (ROI)? = 1,176,000/7,610,000= 15.45% answer

iv. What is the division's residual income? 1176000 - 7,610,000*17.9% = - 186190 answer

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