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Q6. (10 marks) IFIX AUTO Inc. allows its divisions to operate as autonomous unuts. Their results for the current year were as follows: Lovegres Revenues

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Q6. (10 marks) IFIX AUTO Inc. allows its divisions to operate as autonomous unuts. Their results for the current year were as follows: Lovegres Revenues Current assets Capital assets Current liabilities Net operating income After-tax income Weighted average cost of capital Consumer $1,650,000 210,000 870.000 275,000 235,000 186,000 9.5% Commercial $200,000 152,500 630,000 127,000 70,000 55,404 9.5% Truck $5,800,000 419.000 1,500,000 399,000 560,000 443,234 9.5% Required: For each division compute the a.return on sales b.return on investment based on total assets employed c.economic value added d.residual income based on net operating income

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