• Whirlmore, Inc., manufactures and sells washers and dryers through three divisions: HomeSupreme, Apartment, and International. Each division is evaluated as a profit center. Data for each division for last year are as follows Home-Suprems Apartment International Sales $2,700,000 $2,400,000 $1,300,000 Cost of Goods Sold 1,770,000 1,870,000 1,040,000 Selling and Adm. Expense 640,000 180,000 100,000 Average Asset 2,100,000 500,000 400,000 Minimum return 10% 10% 10% Whirlmore, Inc., has two sources of financing: bonds paying 5.6 percent interest after tax, which account for 20 percent of total investment, and equity accounting for the remaining 80 percent of total investment. Whirlmore, Inc., has been in business for over 15 years and is considered a relatively stable stock, despite its 4 link to the cyclical construction industry. As a result, Whirlmore stock has an opportunity cost of 5 percent over the 6 percent long-term government bond rate. Whirlmore‟s total capital employed is $3 million ($2,100,000 for the Home-Supreme Division, $500,000 for the Apartment Division, and the remainder for the International Division). Required: Calculate each of the following for the three divisions and evaluate their performance a) Operating Profit margin b) Return on investment c) Residual income d) Economic Value Added e) Which performance measurement do you prefer and why?