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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

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
f 7,000,000
2,660,000
3,920,000
1,400,000
denotes the British pound sterling, the national monetary unit of Great Britain.
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 35 percent?
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