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Sprint Company has the following data for 2009: Division A Division B Sales Revenue $400,000 $300,000 Contribution margin 160,000 125,000 Operating profit 80,000 30,000 Division

Sprint Company has the following data for 2009:

Division A

Division B

Sales Revenue

$400,000

$300,000

Contribution margin

160,000

125,000

Operating profit

80,000

30,000

Division Investment

320,000

200,000

Weighted average cost of capital

15%

15%

Sprint Company has a target ROI of 20 percent. Required: Calculate the following amounts for each division:

a. Investment Turnover.
b. ROI
c. EVA

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