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Required information Use the following information for the Problems below. The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Incone Average investment Sales margin Capital turnover ROI Residual income Division A Division B Division C $ 11,000,000 $460,000 $ 2,160,000 ? 40% $ 2,630,000 45% ? 30% $132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 6 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income $ 40,800,000 $ 1,710,000 $ 8,100,000 Average Investment $ 10,200,000 Sales margin 18% % 20 % Capital turnover ROI Residual income 1.00 % % 18 % $ 501,000

Required information Use the following information for the Problems below. The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Incone Average investment Sales margin Capital turnover ROI Residual income Division A Division B Division C $ 11,000,000 $460,000 $ 2,160,000 ? 40% $ 2,630,000 45% ? 30% $132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 6 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income $ 40,800,000 $ 1,710,000 $ 8,100,000 Average Investment $ 10,200,000 Sales margin 18% % 20 % Capital turnover ROI Residual income 1.00 % % 18 % $ 501,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information Use the following information for the Problems below. The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Incone Average investment Sales nargin Capital turnover ROI Residual income Division A Division B Division C ? $ 11,000,000 $460,000 $ 2,160,000 ? $ 2,630,000 40% 2 7 ? 45% 7 38% ? $ 132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 6 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,800,000 Income $ 1,710,000 $ 8,160,000 Average investment $ 10,200,000 Sales margin 18% % 20 % Capital tumover ROI Residual income 1.00 % % 18 % $ 501,000
Transcribed Image Text:Required information Use the following information for the Problems below. The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Incone Average investment Sales nargin Capital turnover ROI Residual income Division A Division B Division C ? $ 11,000,000 $460,000 $ 2,160,000 ? $ 2,630,000 40% 2 7 ? 45% 7 38% ? $ 132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 6 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,800,000 Income $ 1,710,000 $ 8,160,000 Average investment $ 10,200,000 Sales margin 18% % 20 % Capital tumover ROI Residual income 1.00 % % 18 % $ 501,000
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