Mangerial accounting

E13.22 Zap is a retailer that specialises in electrical goods. It is a division of a large retail company. The follow data relate to the most recent year of operations: 1. Calculate Zap's Return on Sales, Investment Turnover and Return on Investment 2. Use two component ratios to demonstrate two ways in which the manager of Zap could improve ROI, increasing it to 25%. (Assume due to competitive market forces, the sell price and sales quantities cannot be easily increased. i.e. Changes to the amount given for 'sales revenue' is not a valid solution.) Extension exercise: 3. If in the above exercise, the Weighted Average Cost of Capital for the company was 13% and tax was 30%, would the operation of Zap represent added value for the shareholders? (Note current liabilities are $300,000 and SHOULD be deducted from Invested Capital to calculate Employed Capital.)