Question: Question Content Area Dixie Company has the following data for last year: Division A Division B Sales $400,000 $300,000 Contribution margin 160,000 125,000 Operating income

Question Content Area

Dixie Company has the following data for last year:

Division A Division B
Sales $400,000 $300,000
Contribution margin 160,000 125,000
Operating income 80,000 30,000
Average operating assets 320,000 200,000
Cost of capital 15% 15%

Dixie Company has a target ROI of 20 percent.

Required:

Calculate the following amounts for each division. If required, round your answers to two decimal places. If your answer is negative value, enter minus "-" sign. If your answer is zero, enter "0".

Division A Division B
A. Margin fill in the blank 1 % fill in the blank 2 %
B. Turnover ratio fill in the blank 3 fill in the blank 4
C. ROI fill in the blank 5 % fill in the blank 6 %
D. Residual income $fill in the blank 7 $fill in the blank 8
E. EVA $fill in the blank 9 $fill in the blank 10

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