Question: Problem 6 The Eastern Division reported the following data for the current year. Sales $4,000,000 Variable costs 2,700,000 Controllable fixed costs 800,000 Average operating assets

Problem 6 The Eastern Division reported the following data for the current year. Sales $4,000,000 Variable costs 2,700,000 Controllable fixed costs 800,000 Average operating assets 20,000,000 The company's minimum rate of return is 3%. Required: Compute ROI and residual income for the company under its current situation. It is required to show your work ROI Residual Income a. Current situation %

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