Tremendous Corporation had the following information for its two divisions, Heat Division and Cold Division. Sales for the Heat Division were $10,000,000 and Sales for the Cold Division were $6,000,000. The variable costs (as percentage of sales) were 50% for the Heat Division and 40% for the Cold Division. The fixed expenses for the Heat Division were $3,000,000 and the fixed expenses for the Cold Division were $1,500,000. The assets invested for the Heat Division were $12,000,000 while the assets for the Cold Division were $10,000,000. The target return is 15%. Cost of capital 10% and tax rate 20%.

What is the profit margin and asset turnover for the Cold Division?

What is the profit margin and asset turnover for the Cold Division?

What is the EVA for the Heat Division if the invested capital is $10,000,000?

What is the ROI for the Heat Division?