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?