Cooper Corporations Online System Division buys and installs modular online components. For the most recent year, the division had the following performance targets:

Asset turnover 2.5

Profit margin 6%

Target rate of return on investments for RI 13%

Cost of capital 10%

Income tax rate 40%

Actual information concerning the company's performance for last year follows:

Total assets at beginning of year $3,600,000

Total assets at end of year 5,300,000

Total invested capital (annual average) 8,000,000

Sales 9,000,000

Variable operating costs 3,650,000

Direct fixed costs 4,770,000

Allocated fixed costs 675,000

Required:

a. Compute the segment margin and the average assets for the year.

b. Based on segment margin and average assets, compute the profit margin, asset turnover and ROI.

c. Evaluate the ROI performance.

d. Using your answers from part b., compute the residual income.

e. Compute the EVA. Why are the EVA and RI levels different?

f. Based on the data given in the problem, discuss why ROI, EVA and RI may be inappropriate measures of performance for the division

Please show the math on how you get the answers