Question
Dsoft manufactures PC’s. The company’s Notebook Division reports the following results for the current year:
Sales Revenue $2,000,000
Operating Income $500,000
Average Operating Assets $5,000,000
Dsoft’s management’s required rate of return on invested capital is 10%. Compute the Notebook Division’s operating margin, operating asset turnover, ROI, & Residual Income for the current year.
Sales Revenue $2,000,000
Operating Income $500,000
Average Operating Assets $5,000,000
Dsoft’s management’s required rate of return on invested capital is 10%. Compute the Notebook Division’s operating margin, operating asset turnover, ROI, & Residual Income for the current year.