Question: AA Corp. has the following operating data for the past 2 years: Year 1 Year 2 Return on Investment 10% 15% Residual Income $600 ?

AA Corp. has the following operating data for the past 2 years:

Year 1 Year 2

Return on Investment

 10%

15%

Residual Income

 $600 ?

Required Rate of return

 8% 10%

Average operating assets

 ? $42,000

Sales in year 2 is $60,000 more than sales in year 1.

The Company had the same capital turnover in both years.

(Q) What is the sales margin in Year 2? Use two decimal places in the answer (for example, if the answer is 12%, key in "0.12").

(A)

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