12.

THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 12 16.

Test Company reported the following information for the most recent period.

Sales	$80,000
Variable expenses	60,000
Contribution margin	20,000
Fixed expenses	13,600
Operating income	$6,400

Operating assets at the beginning of the period totaled $60,000. Operating assets at the end of the period totaled $68,000. Test Companys required rate of return is 8%.

Determine the average operating assets for the period.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

13.

Determine the margin for the period.

Note: Give your answer as a decimal and express your answer to two decimal points.

Example: 1.23 or 0.10

14.

Determine the turnover for the period.

Note: Give your answer as a decimal and express your answer to two decimal points.

Example: 1.23 or 0.10

15.

Determine return on investment (ROI) for the period.

Note: Give your answer as a decimal and express your answer to two decimal points.

Example: 1.23 or 0.10

16.

Determine residual income (RI) for the period.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

17.

Test Company reported an ROI of 10%, margin of 20%, and average operating assets of $160,000.

Determine sales for the period.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

18.

Test Company reported residual income of $6,400 and average operating assets of $160,000. The required rate of return is 6%.

Determine operating income for the period.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

19.

Test Company reported sales of $80,000, margin of 20%, and turnover of 50%. The required rate of return is 8%.

Determine residual income.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

20.

Test Company reported operating income of $6,400 and after-tax income of $5,120. Total capital employed totaled $60,000, and the cost of capital was 8%.

Determine the economic value added (EVA).