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Question 1 The financial information of an investment centre belongs to The Siblings Company is reported as follows for the current year. $60,000,000 $32,000,000 $13,000,000
Question 1 The financial information of an investment centre belongs to The Siblings Company is reported as follows for the current year. $60,000,000 $32,000,000 $13,000,000 $14,000,000 Sales Variable Costs Fixed Costs Current Assets Non-Current Assets: Plant and Equipment Investments Vacant Land Factory (20% completed) $50,000,000 $10,000,000 $100,000,000 $15,000,000 Additional information: 1. The company excludes the non-productive assets in the determination of invested capital. 2. The fixed assets remain fixed as per previous year. 3. The minimum required rate of return is 20%. Requirement: 1) Calculate the investment center's Sales Margin, Capital Turnover, Return on Investment (ROI) and Residual Income
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