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 Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 550,000 ? 40% 1 ? $ Division A 1,760,000 22 % Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places. 1.00 % $ Division B $ 12,000,000 $ 2,090,000 $ 2,560,000 $ $ Division B 41,500,000 8,300,000 10,375,000 % % ? ? $ Division C ? ? $ 122,000 Division C ? 45% ? 30% 25 % 510,000 22 %
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 Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 550,000 ? 40% 1 ? $ Division A 1,760,000 22 % Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places. 1.00 % $ Division B $ 12,000,000 $ 2,090,000 $ 2,560,000 $ $ Division B 41,500,000 8,300,000 10,375,000 % % ? ? $ Division C ? ? $ 122,000 Division C ? 45% ? 30% 25 % 510,000 22 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
Transcribed Image Text: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
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Division A
?
$ 550,000
?
40%
1
?
$
Division A
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 10 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
1,760,000
22 %
1.00
%
$
$
Division B
$ 12,000,000
$ 2,090,000
$ 2,560,000
$
Division B
41,500,000
8,300,000
10,375,000
%
%
?
?
?
$
Division C
7
?
?
45%
?
30%
$ 122,000
Division C
25 %
22 %
510,000
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