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Ivy Corp. has the following operating data for the past 2 years: Year 1 Year 2 Return on Investment 10% 40% Residual Income $600 ?
Ivy Corp. has the following operating data for the past 2 years:
| Year 1 | Year 2 | |
| Return on Investment | 10% | 40% |
| Residual Income | $600 | ? |
| Required Rate of return | 8% | 10% |
| Average operating assets | ? | $42,000 |
Sales in year 2 is $60,000 more than sales in year 1.
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 21%, key in "0.21").
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