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The Central Division of National, Inc., has operating income of $16,600 on sales revenue of $179,000. Divisional operating assets are $84,600, and management of National
The Central Division of National, Inc., has operating income of $16,600 on sales revenue of $179,000. Divisional operating assets are $84,600, and management of National has determined that a minimum return of 13% should be expected from all investments.
Required:
a. Using the DuPont model, calculate The Central Divisions margin, turnover, and ROI. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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b. Calculate The Central Divisions residual income.
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