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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% 52.5%

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

Year 1 Year 2

Residual Income

$600

?

Return on Investment

10% 52.5%

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 92%, key in "0.92").

A:) __________?

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