Problem 2 a. Performance Evaluation (25%) PT Sportindo Raya is a manufacturer of sports equipment and supplies in Wakanda. The following is the data available for the Badminton Racket Division in 2019. The Badminton Racket Division is treated as an investment centre in PT Sportindo Raya. 1. Total annual fixed cost : Rp 26.000.000.000 2. Variable cost per unit : Rp 750.000 3. Number of rackets sold : 200.000 units 4. Average operating assets : Rp50.000.000.000 The selling price of the racket is Rp900.000 per unit. Required: 1 Compute the operating profit of the Badminton Racket Division in 2019? (2.5 %) 2 Calculate the following for the Badminton Racket Division in 2019. 1 Operating profit margin. (2%) 2 Average asset turnover. (2 %) 3 Return on investment (ROI). (2%) 3 PT Sportindo Raya has a target ROI for the Badminton Racket Division of 20%. a. What is the operating profit margin that must be obtained so that the ROI is 25% if the average asset turnover in the Badminton Racket Division does not change. (2 %) b. What are activities that must be undertaken by the Badminton Racket Division to achieve the profit margin target? (1.50 %) 4 If the company targets the return of each division to be 20%, what is the residual income of the Badminton Racket Division? (6 %) 5 The following are additional data on the Badminton Racket Division and PT Sportindo Raya. The tax rate is 25%. Short term liability of Badminton Racket Division is Rp6,000.000.000 Weighted Average Cost of Capital (WACC) is 20%. Compute the Economic Value Added Badminton Racket Division in 2019. (7 %)