Nantucket Company has two divisions that report on a decentralized basis. Their results for $2014$

were as follows:

Helmet Ball

Sales $$150,000$ $$300,000$

Operating Income $ $15,000$ $ $45,000$

Average Assets $ $75,000$ $$150,000$

Capital Employed $ $90,000$ $$200,000$

Weighted average cost of capital $12\%12\%$

Required:

Assuming Nantucket has a $30\%$ tax rate, compute the following amounts for each division $($show

all workings$)$:

a$.$ Return on investment $($ROI$).$

b$.$ Residual income if the desired rate of return is $20$ percent.

c$.$ EVA.

d$.$ Turnover.

e$.$ Margin.