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ROI and Economic Profit Calculations X Y Z invested capital $1,050,000 $_______ $1,200,000 income $________ $142,800 $210,000 revenue $2,310,000 $2,856,000 $_______ return on sales 3.00%

ROI and Economic Profit Calculations

X

Y

Z

invested capital

$1,050,000

$_______

$1,200,000

income

$________

$142,800

$210,000

revenue

$2,310,000

$2,856,000

$_______

return on sales

3.00%

________%

_________%

capital turnover

_________

________

3.5

rate of return o invested capital

_________%

10.50%

__________%

1. Prepare a similar tabular presentation, filling in all blanks.

2. Suppose each division is assessed a capital charge based on a cost of capital of 10% of invested capital. Compute the economic profit for each division.

3. Which division is the best performer? Explain.

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