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Kase Tractor Company allows its divisions to operate as autonomous units. Its results for the current year were as follows: Mark to review this sous

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Kase Tractor Company allows its divisions to operate as autonomous units. Its results for the current year were as follows: Mark to review this sous | Next Revenues Current assets Capital assets Current liabilities Net operating income After-tax income Weighted average cost of capital Plows $2,250,000 800,000 1,000,000 350,000 220.000 143,000 8.5% Tractors Combines $500,000 $4,800,000 152,500 1.435,000 400,000 1,750,000 75,000 540,000 60,000 480,000 39,000 312,000 8.5% 8.5% Required: Q ? a. Compute the return on sales for each division. (3 marks) b. Compute the return on investment for each division based on total assets employed. (3 marks) c. Compute the economic value added for each division (3 marks) d. If you were the manager of the tractor division, which method of performance evaluation would you prefer. Why? (1 mark)

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