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Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A Division B Division C ? $ 11,000,000 ? $ 480,000 $ 2,040,000 ? ? $ 2,560,000 ? 20% 3 ? ? ? 25% 322 222 ? ? ? 40% ? $ 132,000

Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A Division B Division C ? $ 11,000,000 ? $ 480,000 $ 2,040,000 ? ? $ 2,560,000 ? 20% 3 ? ? ? 25% 322 222 ? ? ? 40% ? $ 132,000

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 Income Average investment Sales margin Capital turnover ROI Residual income Division A ? Division B Division C $ 11,000,000 ? $ 480,000 $ 2,040,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? 40% ? ? $ 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 12 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 41,300,000 $ 3,300,000 Income $ 1,890,000 $ 8,260,000 $ 990,000 Average investment 10,325,000 $ 4,125,000 Sales margin 24 % % 30% Capital turnover ROI Residual income 1.00 0.80 % % 24 % $ 495,000
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 Income Average investment Sales margin Capital turnover ROI Residual income Division A ? Division B Division C $ 11,000,000 ? $ 480,000 $ 2,040,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? 40% ? ? $ 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 12 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 41,300,000 $ 3,300,000 Income $ 1,890,000 $ 8,260,000 $ 990,000 Average investment 10,325,000 $ 4,125,000 Sales margin 24 % % 30% Capital turnover ROI Residual income 1.00 0.80 % % 24 % $ 495,000
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