Question 2 The directors of ZED Ltd are reviewing the performance of two of its divisions. The following information is available for the year ending 31 March 2019. ALPHA DIVISION $'000 BETA DIVISION $'000 Sales Operating profit Capital employed 3,200 840 50,000 700 3,500 4,000 ALPHA division is a food retailer that sells low priced food from a number of stone rented on short-term contracts. BETA division sells luxury motor vehicles, who manufactures in a fully automated production plant. Required: (a) Calculate the following performance measures for the two divisions. Delete (i) Return on capital employed (2 marks) (ii) Return on sales Backspace (2 marks) (iii) Asset turnover (based upon capital employed) (2 marks) (iv) Residual income (using an imputed interest charge of 12% per annum (2 marks) (b) Suggest ONE reason for the differences between the two divisions in each of the following ratios: Ent. (i) Return on sales (ii) Asset turnover (2 marks) Question 3