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Quiz Company reported the following information for the last year. Sales $4,000,000 Cost of goods sold 2,100,000 Gross margin 1,900,000 Operating expenses 1,100,000 Operating income

Quiz Company reported the following information for the last year.

Sales

$4,000,000

Cost of goods sold

2,100,000

Gross margin

1,900,000

Operating expenses

1,100,000

Operating income

800,000

Income taxes (40%)

320,000

Net income

$480,000

Quiz Company began the year with operating assets of $2,700,000. At year end, operating assets were $2,300,000. Quiz Companys required rate of return was 15%, and the cost of capital was 12%. Total capital employed during the year was $1,400,000.

a. Determine margin for the year

c. Determine ROI for the year

d. Determine Residual Income (RI) for the year

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