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Unit 10 Question 1: (30 marks total) Billy Bob's Quality Pre-owned Auto Sales Ltd. allows its divisions to operate as autonomous units. Their results for

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Unit 10 Question 1: (30 marks total) Billy Bob's Quality Pre-owned Auto Sales Ltd. allows its divisions to operate as autonomous units. Their results for the current year were as follows SUVs Trucks $900 152 630 127, 70 Cars evenues urrent assets apital assets urrent liabilities $1,650 210 870 275 235 186 5,800 419 1,590 399 560 Net operating income fter-tax income eighted average cost of capital 443,23 9.5 9.5 9.5 Required For each division compute the 1) return on sales(6 marks 2) return on investment based on total assets employed (6 marks) 3) economic value added (12 marks) 4) residual income based on net operating income (6 marks)

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