Cuisine Master is a division of a major corporation. The following data are for the latest year of operations.
|
Sales |
$30,000,000 |
|
Net Operating income |
$1,170,000 |
|
Average operating assets |
$8,000,000 |
|
The company’s minimum required rate of return |
18% |
Required:
i. What is the division’s margin?
ii. What is the division’s turnover?
iii. What is the division’s ROI?
iv. What is the division’s residual income?