Mallory, Inc The Tax Rate for Mallory, Inc

Essay

Mallory, Inc. has the following data available for two of its divisions for last year:
$$\begin{array} { l c r } && \text { Europearn } \\& \text { Asian Division } & \text {Division } \\ \text { Sales } & \$ 460,000 & \$ 900,000 \\\text { Contribution Margin } & 184,000 & 470,000 \\\text { Operating income } & 92,000 & 90,000 \\\text { Average operating assets } & 368,000 & 750,000 \\\text { Weighted average cost of capital } & 14 \% & 14 \%\end{array}$$
The tax rate for Mallory, Inc. is 18%.
Required:
(1) Compute the following for each division:
(a) Profit margin.
(b) Asset turnover.
(c) ROI.
(d) Residual income.
(e) EVA (assume there are no current liabilities).
(2) Briefly discuss which division appears most successful and why?