Question: Sales Contribution margin Operating income Average operating assets Weighted average cost of capital Sprint Company has a target ROI of 20 percent. a) Calculate

Sales Contribution margin Operating income Average operating assets Weighted average cost of

Sales Contribution margin Operating income Average operating assets Weighted average cost of capital Sprint Company has a target ROI of 20 percent. a) Calculate the following measures for Division A: (2 points each) i. Margin ratio: ii. iii. Sporadic Company has the following data for 2021: Division A $400,000 160,000 80,000 320,000 15% V. Turnover ratio: ROI: iv. Residual income: EVA: b) Compare and discuss the advantages and disadvantages of the following performance measures: ROL, EVA, and Residual Income. (5 points)

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a Calculation of performance measures for Division A i Margin ratio Contribution Margin Sales 160000 400000 04 or 40 ii Turnover ratio Sales Average operating assets 400000 320000 125 times iii ROI Op... View full answer

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