Mallory,Inc The Imputed Interest for Mallory,Inc

Essay

Mallory,Inc.has the following data available for two of its divisions for last year: $$\begin{array} { | l | r | r | } \hline & \begin{array} { r } \text { Asian } \\\text { Division }\end{array} & \begin{array} { r } \text { European } \\\text { Dirision }\end{array} \\\hline \text { Sales } & \$ 460,000 & \$ 900,000 \\\hline \text { Contribution Margin } & 184,000 & 470,000 \\\hline \text { Operating income } & 92,000 & 90,000 \\\hline \text { Average operating assets } & 368,000 & 750,000 \\\hline \text { Weighted average cost of } & 14 \% & 14 \% \\\text { capital } & \\\hline\end{array}$$
The imputed interest for Mallory,Inc.is 24%.The tax rate for Mallory,Inc.is 18%.Required:
(1)Compute the following for each division:
(a)Sales margin.(b)Capital turnover.(c)ROI.(d)Residual income.(e)EVA (assume there are no current liabilities).(2)Briefly discuss which division appears most successful and why?