Calculate the investment turnover roi and eva

Reference no: EM131977410

Problem

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
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

Reference no: EM131977410

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