Q1 Sporadic Company has the following data for 2016 (40 points): Sales Contribution margin Operating income Average operating assets Weighted average cost of capital Sprint Company has a target ROI of 20 percent Division A $400,000 $160.000 $80,000 $320,000 15% Division B $300,000 $125,000 $125 $30,000 $200,000 15% Required: Calculate the following amounts for each division: a. Margin ratio b.Tumover ratio c. ROI d.Residual income e. EVA Division A: a. Margin ratio = $80,000/$400,000 - 20% b. Turnover ratio = $400,000/$320,000 = 1.25 C. ROI = 0.20 x 125 =25% . d. Residual income =$80,000 - 0.20($320,000) =$16,000 e. EVA = $80,000 - 0.15($320,000) = $32,000