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Meets Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues

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

Sport

Terrain

City

Revenues

$1,800,000

$900,000

$6,100,000

Current assets

230,000

40,000

410,000

Capital assets

870,000

660,000

1,590,000

Current liabilities

100,000

100,000

500,000

Net operating income

250,000

60,000

660,000

After-tax income

188,400

36,400

484,400

Weighted average cost of capital

10%

10%

10%

Required:

For each division compute (to two decimal) the:

  1. The margin %?

  1. Return on investment (to two decimal) %?

  1. Economic value added?

  1. Residual income?

  1. Turnover (to two decimal)?

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