Sprint Company has the following data for 2009 Division A Division B Sales Revenue $400,000 $300,000 Contribution margin 160,000 125,000 Operating profit 80,000 30,000 Division Investment 320,000 200,000 The weighted average cost of capital 15 15 Sprint Company has a target ROI of 20 percent Requir...

A Division A Sales revenue Investment turnover Division investm ...

Sprint Company has the following data for 2009: Division A Division B Sales Revenue $400,000 $300,000 Contribution

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Sprint Company has the following data for 2009:

	Division A	Division B
Sales Revenue	$400,000	$300,000
Contribution margin	160,000	125,000
Operating profit	80,000	30,000
Division Investment	320,000	200,000
The weighted average cost of capital	15%	15%

Sprint Company has a target ROI of $20$ percent.

Required:

Calculate the following amounts for each division:

a. Investment Turnover.

b. ROI.

c. EVA.

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Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Posted Date: Jan 03, 2021 02:38 PM

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Sprint Company has the following data for 2009: Division A Division B Sales Revenue $400,000 $300,000 Contribution

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Managerial Accounting Tools for business decision making

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