A.

Problem 13-37 ROI and Residual Income; Missing Data (LO 13-2) Required: The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on invested capital is 10 percent. (Round "Capital turnover" answers to 2 decimal places.) Sales revenue 41,500,000 Income $ 1,?60,000 $ 8,300,000 Average investment [ $ 10,3?5,000 Sales margin 22 % % 25 % Capital turnover 1.00 ::]: ROI \".4: \"A: 22 % Residual income $ 510,000 The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on invested capital is 8 percent. Division A Division B Division C Sales revenue .3 $11,888,888 ? Income $ 453,333 $ 2,133,333 ? Average investment ? $ 2,638,888 ? Sales margin 38% P 35% Capital turnover 2 ? ? ROI .3 ? 39% Residual income P $ 122,888 Required: 2. Suppose Division A's sales margin increased to 35 percent. while its capital turnover remained constant. Compute the division's new ROI. "fa Suncoast Food Centers has provided the following information with regard to the purchase of equipment. Acquisition cost of equipment $896,666 Useful life 5 years Salvage value at end of useful life 6 Annual straight-line depreciation $166,666 Annual income generated by asset (before deducting depreciation) $246,666 Use a 10 percent rate to compute the imputed interest charge. Required: Complete the following table