B. The following data available for two divisions to Nonn Bhd (NB) for last year: Division A Division 1 Sales RM28.000 RM1,620,000 Contribution Margin RM331,200 RM 846,000 Operating Income RM165,600 RM 162,000 Average operating assets RM662,400 RM1,350,000 Weighted Average Cost of Capital 14% Assume there are no current liabilities. The imputed interest ite for NB is 24% and the tax rate is 18% Required: calculate by your self i. For each division, compute the: a) sales margin b) capital turnover c) return on investment (RON) (2 marks) (2 marks) (2 marks) ACCT2220/March 2018 Page 5 of 6 d) residual income c) economic Value Added (EVA) (3 marks) ii. Briefly discuss which division appears to be most successful and why. (3 marks) (4 marks) *** END OF QUESTIONS *** B. The following data available for two divisions to Nonn Bhd (NB) for last year: Division A Division 1 Sales RM28.000 RM1,620,000 Contribution Margin RM331,200 RM 846,000 Operating Income RM165,600 RM 162,000 Average operating assets RM662,400 RM1,350,000 Weighted Average Cost of Capital 14% Assume there are no current liabilities. The imputed interest ite for NB is 24% and the tax rate is 18% Required: calculate by your self i. For each division, compute the: a) sales margin b) capital turnover c) return on investment (RON) (2 marks) (2 marks) (2 marks) ACCT2220/March 2018 Page 5 of 6 d) residual income c) economic Value Added (EVA) (3 marks) ii. Briefly discuss which division appears to be most successful and why. (3 marks) (4 marks) *** END OF QUESTIONS ***