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Oliver's Olive Company has reported the following financial information for last year: Sales $5,000,000 Variable costs $3,250,000 Traceable fixed costs $1,000,000 Average invested capital (assets)
Oliver's Olive Company has reported the following financial information for last year:
| Sales | $5,000,000 | |
| Variable costs | $3,250,000 | |
| Traceable fixed costs | $1,000,000 | |
| Average invested capital (assets) | $6,000,000 | |
| Current liabilities | $800,000 | |
| Required rate of return | 12% | |
| Income tax rate | 30% | |
| Weighted average cost of capital | 10% |
Required
(Round answers to 0 decimal places.)
| Calculate the pre-tax operating income. | $ | |
| Calculate the residual income. | $ | |
| Calculate the return on investment. | % | |
| Calculate the after-tax operating income. | $ | |
| Calculate the economic value added. |
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
5th Edition
126078035X, 978-1260780352
