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Problem 13-37 ROI and Residual Income; Missing Data (LO 13-2) Required: The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required
Problem 13-37 ROI and Residual Income; Missing Data (LO 13-2) Required: The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on Invested capital Is 6 percent. (Round "Capital turnover" answers to 2 decimal places.) * Answer is complete but not entirely correct. Division A Division B Division C Sales revenue $ 9,000,000 5 40,200,000 S 4,114,286 * Income S 1,620,000 S 8,040,000 822,857 X Average investment $ 9,000,000 5 10,050,000 5,714,286 * Sales margin 18 20 % 20 Capital tumover 1.00 4.00 0.72 X ROI 18 80 18 Residual income S 900,000 (X S 7,437,000 S 480,000
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