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Illy company has the following operating data for the past 2 years: Year 1 Year 2 Residual Income $600 ? Return on Investment 10% 87.5%

Illy company has the following operating data for the past 2 years:

Year 1 Year 2

Residual Income

$600

?

Return on Investment

10% 87.5%

Required Rate of return

8% 9%

Average operating assets

? $42,000

Sales in year 1 is $70,000 less than sales in year 2.

The Company had the same capital turnover in both years.

Q.) What is the sales margin in Year 2? Use two decimal places in the answer (for example, if the answer is 14%, key in "0.14").

A.)

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