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Topaz Corporation's Newport Division has the following information: Sales revenue $17,010,000 Operating Income $850,500 Sales margin Return on investment Topaz's imputed interest rate is 12%
Topaz Corporation's Newport Division has the following information: Sales revenue $17,010,000 Operating Income $850,500 Sales margin Return on investment Topaz's imputed interest rate is 12% (its minimum required rate of return) Topaz considers the investment in a division to be the division's average invested capital. Topaz regards the divisions Operating Income as its income for performance measurement ratios. Required: (Show your workings) 3. Compute Newport's capital turnover. (Rounded) b. Compute Newport's average invested capital. c. Calculate Newport's residual income
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