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The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? Division B $ 11,000,000 Division C ? $ 430,000 $ 2,010,000 ? ? $ 2,510,000 30% 35% 1 ? ? ? ? ? 30% ? $ 124,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Sales revenue Income $ 1,740,000 Average investment Sales margin Capital turnover ROI Residual income Division A Division B Division C 41,400,000 $ 8,280,000 10,350,000 20% % 25 % 1.00 % % EA 20% 507,000
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