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Selected accounting information for the Anderson Company for the past two years is given below: Year 1 Residual income .....................$3,750 Variable costs ......................25% of sales

Selected accounting information for the Anderson Company for the past two years is given below:

Year 1

Residual income .....................$3,750

Variable costs ......................25% of sales

Fixed costs .........................$172,500

Minimum required rate of return.....9%

Year 2

Residual income .....................$74,000

Variable costs ......................60% of sales

Fixed costs .........................$110,000

Minimum required rate of return.....16%

Turnover ............................5

The margin in year 2 was three times larger than

the margin in year 1.

Calculate the following financial metrics:

  1. Sales revenue in year 2
  2. Return on investment in year 1
  3. Return on investment in year 1

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