The Dry Wall Division reports the following operating data for the past two years:

	Year 1	Year 2
Profit margin ratio	16%	?
Asset turnover	2.5	2
Divisional assets	?	$ 150,000
After-tax income	$ 40,000	?
Stockholders' equity	$ 80,000	$ 125,000
Sales	?	?

The return on investment at the Dry Wall Division was exactly the same in Year 1 and Year 2.

After-tax income in Year 2 amounted to:

Question 36 options:

	$60,000.
	$50,000.
	$40,000.
	$35,000.