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Calculate the economic value added

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Question - Residual income, ROI, and EVA

The following selected data pertain to Brannard Company's Construction Division for last year.

Sales $2,380,000

Variable costs $1,428,000

Traceable fixed costs $238,000

Average invested capital (assets) $3,570,000

Current liabilities $238,000

Required rate of return 15%

Marginal tax rate 36%

Weighted average cost of capital 12%

Required -

1. Calculate the residual income.

2. Calculate the return on investment.

3. Calculate the economic value added.

Reference no: EM132545377

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