IFIX AUTO Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows:

Consumer

Commercial

Truck

Revenues

$1,650,000

$900,000

$5,800,000

Current assets

210,000

152,500

419,000

Capital assets

870,000

630,000

1,590,000

Current liabilities

275,000

127,000

399,000

Net operating income

235,000

70,000

560,000

After-tax income

186,000

55,404

443,234

Weighted average cost of capital

9.5%

9.5%

9.5%

Required:

For each division compute the

a. return on sales

b. return on investment based on total assets employed

c. economic value added

d. residual income based on net operating income

IFIX AUTO Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: 3. Revenues Current assets Capital assets 870, 000 630, 000 1, 590, 000 Current liabilities 275, 000 127, 000 399, 000 \\let operating income 235, 000 560, 000 After-tax income Weighted average cost of capital 95% 9.5% 9.5% Required: For each division compute the a. return on sales return on investment based on total assets employed b c. economic value added d residual income based on net operating income