The Frozen Foods Division of AgraFoods Corporation had sales of $8,400,000 and operating income of $1,848,000 last year.The total assets of the Frozen Foods Division were $3,500,000,while current liabilities were $850,000.AgraFoods Corporation's target rate of return is 12%,while its weighted average cost of capital is 8%.The effective tax rate for the company is 40%.
Required:
a.Calculate the sales margin.
b.Calculate the capital turnover.
c.Calculate the return on investment (ROI).
d.Calculate the residual income.
e.Calculate the Economic Value Added (EVA).

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The Answer of  The Frozen Foods Division of AgraFoods Corporation had sales of $8,400,000 and operating income of $1,848,000 last year.The total assets of the Frozen Foods Division were $3,500,000,while current liabilities were $850,000.AgraFoods Corporation's target rate of return is 12%,while its weighted average cost of capital is 8%.The effective tax rate for the company is 40%.
Required:
a.Calculate the sales margin.
b.Calculate the capital turnover.
c.Calculate the return on investment (ROI).
d.Calculate the residual income.
e.Calculate the Economic Value Added (EVA).

The Frozen Foods Division of AgraFoods Corporation Had Sales of $8,400,000