Question: Consider the following data (in thousands): 1. For each division, compute the return on sales, the capital turnover, and the return on investment (ROI). 2.

Consider the following data (in thousands):

Average invested capital Revenue Income Hubert $2,000 3,600 180 Division Duane S

1. For each division, compute the return on sales, the capital turnover, and the return on investment (ROI).

2. Which division is the best performer if evaluation is based on ROI? Explain.

3. Suppose each division is assessed a cost of capital of 10% on invested capital. Compute the economic profit for each division. Which division is the best performer based on economic profit? Explain.

Average invested capital Revenue Income Hubert $2,000 3,600 180 Division Duane S 600 1,200 84 Louis $1,800 9,000 216

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