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Required information Exercise 13-33 Improving ROI (LO 13-2, 13-3) [The following information applies to the questions displayed below.] The following data pertain to British

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Required information Exercise 13-33 Improving ROI (LO 13-2, 13-3) [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 6,900,000 2,928,000 3,696,000 3,450,000 denotes the British pound sterling, the national monetary unit of Great Britain. Exercise 13-33 Part 3 3-a. Assuming that the expenses and cost of goods sold are reduced in order to improve the firm's ROI to 15 percent, compute the firm's new sales margin. 3-b. Show how the new sales margin and the old capital turnover together result in a new ROI of 15 percent.

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