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

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

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. Division A Sales revenue Income $460,000 Division B $12,000,000 $ 2,110,000 Division C Average investment $ 2,600,000 Sales margin Capital turnover 30% 3 ROT Residual income 35% 40% $137,000 Required: 2. Suppose Division A's sales margin increased to 35 percent, while its capital turnover remained constant. Compute the division's new ROL %

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