1. Business
2. Accounting
3. Financial Accounting & Bookkeeping
4. Financial Ratios
5. Debt Ratio
6. 349183

Sprint Company has the following data for 2011:

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
Weighted average cost of capital 15% 15%

Sprint Company has a target ROI of 20 percent.

Required:

Calculate the following amounts for each division:
Make sure you have answers for Division A & B. Also make sure your answers are in the appropriate format.
a. Margin ratio
b. Turnover ratio
c. ROI
d. Residual income
e. EVA

Must show work.