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Operating results: Total revenues Less: Direct variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Allocated corporate costs Operating income $ 20,150,000
Operating results: Total revenues Less: Direct variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Allocated corporate costs Operating income $ 20,150,000 8,295,000 11,855,000 7,245,000 4,610,000 3,802,000 $ 808,000 Current assets Fixed assets Accumulated depreciation Total operating assets Liabilities Net assets Book Values December 31, 2021 December 31, 2020 $ 1,204,000 9,868,000 (1,204,000) $ 1,729,000 11,239,000 (1,683,000) $ 9,868,000 $ 2,887,000 $ 11,285,000 $ 3,355,000 $ 6,981,000 $ 7,930,000 Market Values December 31, December 31, 2021 2020 $9,171,000 $ 10,137,000 Required: 1. Compute the margin, turnover, and ROI using operating income and the book value of average total operating assets. (Round "Margin" answer as a percentage rounded to 2 decimal places and other answers to 1 decimal place.) Margin Turnover Return on investment % 2. Compute ROI using segment margin and average market value of operating assets. (Round your intermediate calculations to 2 decimal places. Enter your percentage answer rounded to 2 decimal place (i.e., 0.1234 should be entered as 12.34).) Return on investment % 3. Compute Rl using operating income and the market value of average net assets. Assume that the required rate of return is 7%. Residual income
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