Use the following information for the Problems below: The following data pertain to three divisions of...

 

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Use the following information for the Problems below: 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 Division C $ 11,000,000 ? $ 480,000 $ 2,040,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? 40% ? ? $ 132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 12 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income $ 41,300,000 $ 3,300,000 $ 1,890,000 $ 8,260,000 $ 990,000 Average investment $ 10,325,000 $ 4,125,000 Sales margin 24 % % 30% Capital turnover 1.00 0.80 ROI Residual income % % 69 24 % 495,000 Use the following information for the Problems below: 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 Division C $ 11,000,000 ? $ 480,000 $ 2,040,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? 40% ? ? $ 132,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 12 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income $ 41,300,000 $ 3,300,000 $ 1,890,000 $ 8,260,000 $ 990,000 Average investment $ 10,325,000 $ 4,125,000 Sales margin 24 % % 30% Capital turnover 1.00 0.80 ROI Residual income % % 69 24 % 495,000

Answer rating: 100% (QA)

Here are the stepbystep calculations to solve for the unknown values Division A Income is given as 4... View the full answer