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managerial accounting, please help! Segment Income Statement for Size Corporation Big Little Total Revenue $1,000,000 $620,000 $1,620,000 Variable expenses Product 520,000 310,000 830,000 Selling and

managerial accounting, please help!

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Segment Income Statement for Size Corporation Big Little Total Revenue $1,000,000 $620,000 $1,620,000 Variable expenses Product 520,000 310,000 830,000 Selling and administrative 80,000 50,000 130,000 Contribution margin 400,000 260,000 660,000 Less traceable fixed costs 60,000 20,000 80,000 Segment margin $340,000 $ 240,000 $580,000 Common fixed costs 270,000 Net operating income $310,000Size's tax rate is 40% and the required rate of return is 14%. The Big division balance sheet showed $1,300,000 of assets ($300,000 current and $1,000,000 long-term) and $820,000 of liabilities ($220,000 current and $600,000 long-term). The Little division reported $800,000 of assets ($100,000 current and $700,000 long-term) and $550,000 of liabilities ($400,000 current and $150,000 long-term). Size has the following capital structure: Type of Capital Cost of Capital Percent of Portfolio Debt 12.5% 55% Equity 18% 45% Required: 1. Calculate sales margin, asset turnover and ROI for each division. 2. Calculate Residual Income (RI) for each division. 3. Calculate economic value added for each division. 4. Which of the two managers will be rated higher on performance? Why

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