can you help me answer these questions? 1-4

D) The Engine Division of The Cleveland Automotive Corporation had sales of $7,200,000 and operating income of $864,000 last year. The total assets of the Engine Division were $3,200,000 while current liabilities were $800,000. The Cleveland Automotive Corporation's target rate of return is 13% while its weighted average cost of capital is 9%. The effective tax rate for the company is 45%.

Required:

1. Calculate the sales margin.

2. Calculate the capital turnover.

3. Calculate the return on investment (ROI).

4. Calculate the residual income.

BA252-01 Spring '16 NAME:___________________________________ EXAM 3 Take-home D) The Engine Division of The Cleveland Automotive Corporation had sales of $7,200,000 and operating income of $864,000 last year. The total assets of the Engine Division were $3,200,000 while current liabilities were $800,000. The Cleveland Automotive Corporation's target rate of return is 13% while its weighted average cost of capital is 9%. The effective tax rate for the company is 45%. Required: 1. 2. 3. 4. Calculate Calculate Calculate Calculate the the the the sales margin. capital turnover. return on investment (ROI). residual income