Calculate the economic value added

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Question - The following selected data pertain to Brannard Company's construction division for last year:

Sales $2,085,000

Variable costs $1,231,000

Traceable fixed costs $188,000

Average invested capital (assets) $3,000,000

Current liabilities $181,000

Required rate of return 16%

Marginal tax rate 36%

Weighted average cost of capital 13%

Q1. Calculate the Residual Income.

Q2. Calculate the return on investment (ROI).

Q3. Calculate the economic value added (EVA).

Reference no: EM132248488

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