The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of...

Transcribed Image Text:

The following data pertain to three divisions of Nevada Aggregates, Incorporated. 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 ? Division B Division C $ 11,000,000 ? $ 580,000 $ 2,170,000 ? ? $ 2,660,000 ? 20% ? 25% 2 ? ? 222. ? ? ? 30% ? $ 130,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income 40,300,000 $ 1,630,000 $ Average investment $ 8,866,000 10,075,000 Sales margin 20% % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 471,000 The following data pertain to three divisions of Nevada Aggregates, Incorporated. 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 ? Division B Division C $ 11,000,000 ? $ 580,000 $ 2,170,000 ? ? $ 2,660,000 ? 20% ? 25% 2 ? ? 222. ? ? ? 30% ? $ 130,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue Income 40,300,000 $ 1,630,000 $ Average investment $ 8,866,000 10,075,000 Sales margin 20% % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 471,000