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 ? $590,000 ? 40% 1 ? ? Division B $10,000,000 $ 2,040,000 $ 2,680,000 ? ? ? ? Division c ? ? ? 45% 2 30% $126,000 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 %