Question
The following selected data pertain to Coburg Companys furniture division for last year: Sales $5,323,000 Variable costs $2,969,000 Traceable fixed costs $894,000 Average invested capital
The following selected data pertain to Coburg Companys furniture division for last year:
| Sales | $5,323,000 | ||
| Variable costs | $2,969,000 | ||
| Traceable fixed costs | $894,000 | ||
| Average invested capital (assets) | $7,300,000 | ||
| Current liabilities | $497,000 | ||
| Required rate of return | 15% | ||
| Marginal tax rate | 29% | ||
| Weighted average cost of capital | 12% |
Calculate the residual income.
| Residual income | $ |
Calculate the return on investment.
| ROI | % |
Calculate the economic value added.
| EVA | $ |
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Payroll Accounting 20
Authors: Bernard J. Bieg, Judith A. Toland
26th Edition
1337268798, 9781337268790
