Magical Creative Creation (MCC) a division of Marg Stevenson CPA, buys and installs modular office components. For most recent year, the division had the following performance targets: 2.5 6% Asset...

1. Compute the residual income of MCC.

2. Compute the EVA of MCC.

Extracted text: Magical Creative Creation (MCC) a division of Marg Stevenson CPA, buys and installs modular office components. For most recent year, the division had the following performance targets: 2.5 6% Asset turnover Profit margin Target rate of return on investments for RI 13% Cost of capital Income tax rate 10% 40% Actual information concerning the company's performance for last year follows: Total assets at beginning of year Total assets at end of year Total invested capital (annual average). Sales $3,600,000 5,300,000 8,000,000 9,000,000 3,650,000 4,770,000 675,000 Variable operating costs Direct fixed costs Allocated fixed costs