Question

Richard's Division of Richard and Sons has the following data related to a particular period:

Average invested capital 4700,000
Imputed interest rate 10%
Revenues $1,900,000
Variable costs $1,150,000
Fixed costs related solely to the division $673,000
Required:

. Calculate the return on sales for the period.

.   Calculate the amount of residual income for the period.

. Calculate the return on investment for the period.

. Calculate the investment turnover (rounded) for the period.

Answer 1