Part 1

Part 2

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Required information [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. de sold Sales revenue 6,250,000 Cost of goods sold 2,475,000 Operating expenses Average invested capital1,250,000 3:337,500 denotes the British pound sterling, the national monetary unit of Great Britain. Required: Compute the company's sales margin, capital turnover, and ROI. Sales margin Capital turnover ROI % Required information (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. Sales revenue Cost of goods sold Operating expenses Average invested capital 6,250,000 2,475,000 3,337,500 1,250,000 denotes the British pound sterling, the national monetary unit of Great Britain. 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 40 percent? Total expenses must be reduced to