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 ? $ 480,000 ? 20% 1 Division B $ 11,000,000 $ 2,020,000 $ 2,620,000 ? 7 7 Division C 7 ? ? 25% ? 30% $ 128,000
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 ? $ 480,000 ? 20% 1 Division B $ 11,000,000 $ 2,020,000 $ 2,620,000 ? 7 7 Division C 7 ? ? 25% ? 30% $ 128,000
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...
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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
?
$ 480,000
$
Division A
1,710,000
20 %
1.00
?
20%
1
?
?
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 8 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
%
Division B
$ 11,000,000
$ 2,020,000
$ 2,620,000
$
$
$
Division B
41,100,000
8,220,000
10,275,000
%
7
7
%
7
7
Division C
7
$
?
?
25%
?
30%
$ 128,000
Division C
25%
20 %
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
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Division A
?
$ 480,000
$
Division A
1,710,000
20 %
1.00
?
20%
1
?
?
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 8 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
%
Division B
$ 11,000,000
$ 2,020,000
$ 2,620,000
$
$
$
Division B
41,100,000
8,220,000
10,275,000
%
7
7
%
7
7
Division C
7
$
?
?
25%
?
30%
$ 128,000
Division C
25%
20 %
495,000
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