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6 Required Information Exercise 13-33 Improving ROI (LO 13-2, 13-3) [The following information applies to the questions displayed below.) The following data pertain to British
6 Required Information Exercise 13-33 Improving ROI (LO 13-2, 13-3) [The following information applies to the questions displayed below.) The following data pertain to British Isles Aggregates Company, a producer of sand, gravel, and cement, for the year just ended. Part 1 of 3 1.5 points Sales revenue Cost of goods sold Operating expenses Average invested capital 6,500,000 2,880, eee 3,360,000 3,250,000 eBook denotes the British pound sterling, the national monetary unit of Great Britain. References Exercise 13-33 Part 1 Required: Compute the company's sales margin, capital turnover, and ROI. % Sales margin Capital turnover ROI %6 Exercise 13-33 Part 2 2. If the sales and average Invested capital remain the same during the next year, to what level would total expenses have to be reduced in order to improve the firm's ROI to 15 percent? Total expenses must be reduced to Exercise 13-33 Part 3 3-a. Assuming that the expenses and cost of goods sold are reduced in order to improve the firm's ROI to 15 percent, compute the firm's new sales margin. 3-b. Show how the new sales margin and the old capital turnover together result in a new ROI of 15 percent. Complete this question by entering your answers in the tabs below. Reg 3A Req 3B Assuming that the expenses and cost of goods sold are reduced in order to improve the firm's ROI to 15 percent, compute the firm's new sales margin. (Round your answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) New sales margin 96 Reg 3A Reg 3B Show how the new sales margin and the old capital turnover together result in a new ROI of 15 percent. (Enter "new sales margin" as a percentage rounded to 2 decimal places (i.e., .1234 should be entered as 12.34) and "old capital turnover" to two decimal places.) NEW ROI = 96 x = 15 96
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