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Division A Division B Division C Sales revenue Income $1,800,000 $8,320,000 Average investment Sales margin 24 % 20 % 30 % Capital turnover 1.00 4.00
| Division A | Division B | Division C | ||||
| Sales revenue | ||||||
| Income | $1,800,000 | $8,320,000 | ||||
| Average investment | ||||||
| Sales margin | 24 | % | 20 | % | 30 | % |
| Capital turnover | 1.00 | 4.00 | ||||
| ROI | % | % | 24 | % | ||
| Residual income | $498,000 |
Required:
The following data pertain to three divisions of Nevada Aggregates, Inc. The companys required rate of return on invested capital is 12 percent. (Round "Capital turnover" answers to 2 decimal place.)
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