Question: Problem 13-38 Improving ROI (LO 13-3) The following data pertain to three divisions of Nevada Aggregates, Inc. The company's required rate of return on invested

Problem 13-38 Improving ROI (LO 13-3) The following data pertain to

Problem 13-38 Improving ROI (LO 13-3) The following data pertain to three divisions of Nevada Aggregates, Inc. 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 ? $ 470,000 ? 40% 2 ? ? Division B $11,000,000 $ 2,040,000 $ 2,660,000 ? ? ? ? Division C ? ? ? 45% ? 40% $ 139,000 Required: 2. Suppose Division A's sales margin increased to 45 percent, while its capital turnover remained constant. Compute the division's new ROI. New return on investment %

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