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The following data pertain to three divisions of Calrisian Enterprises. The company's required rate of return on invested capital is 8 percent. hal 45% Division

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The following data pertain to three divisions of Calrisian Enterprises. The company's required rate of return on invested capital is 8 percent. hal 45% Division 1 Division 1 Division III Sales revenue $12,000,000 Income $ 2,170,000 $540,000 Average investment $ 2,660,000 Sales margin 40% Capital turnover 3 ? ROIS Residual income ? $136,000 LILLA i barne h d. Required: 2. Suppose Division II's sales margin increased to 45 percent, while its capital turnover remained constant. Compute the division's new ROL 7 2096 New return on investment

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