Marys Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows:

Sport

Terrain

City

Revenues

$2,300,000

$996,000

$6,650,000

Current assets

291,000

91,000

621,000

Capital assets

870,000

660,000

1,590,000

Current liabilities

100,000

100,000

500,000

Net operating income

230,000

40,000

600,000

After-tax income

184,000

32,000

480,000

Weighted average cost of capital

10%

10%

10%

Required:

For each division compute (to two decimal) the:

11. Return on sales in %

12. Return on investment (to two decimal) based on total assets employed in %

13. Economic value added

14. Residual income based on net operating income