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Business, 06.05.2020 17:57 borsha255

The engine divison of the cleveland automotive corporation had sales of $7,200,000 and operating income of $864,000 last year. The total assets of the engine division were $3,200,000 while current liabilities were $800,000.The cleveland auto corporation's target rate of return is 13% while its weighted average cost of capital is 9%. The effective tax rate for the company is 45%.

Required:

A. calculate sales margin

B. calculate capital turnover

C. calculate the return on investment (ROI)

D. calculate the residential income

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