must first determine how the company defines and measures invested capital . In this case , we will explore the following definitions of invested capital :
1 . Total assets : All assets are included .
2 . Stockholders ' equity : Focuses on the investment of the owners of the business .
E10-34 ( similar to ) p . 405
A chair ' s variable cost is $ 50 and its market value as a piece of unfinished furniture is $ 60 at a transfer point from the assembly division to the finishing division . The finishing division ' s variable cost of sanding and finishing the chair is $ 22 , and the selling price of the finished chair is $ 76 .