Consider the following data: 1. Prepare a similar tabular presentation, filling in all blanks. 2. Suppose each

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Consider the following data:

Invested capital Income Revenue Return on sales Capital turnover Rate of return on invested capital X

1. Prepare a similar tabular presentation, filling in all blanks.
2. Suppose each division is assessed a capital charge based on a cost of capital of 12% of
invested capital. Compute the economic profit for each division.
3. Which division is the best performer? Explain.

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Introduction To Management Accounting

ISBN: 9780273737551

1st Edition

Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg

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