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Required information PR 13-37,13-38(Algo) Use the following information for the Problems below Skip...

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Accounting

Required information
PR 13-37,13-38(Algo) Use the following information for the Problems below
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Use the following information for the Problems below:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The companys required rate of return on invested capital is 8 percent.
Division A Division B Division C
Sales revenue ?question mark $ 10,000,000?question mark
Income $ 510,000 $ 2,150,000?question mark
Average investment ?question mark $ 2,530,000?question mark
Sales margin 30%?question mark 35%
Capital turnover 2?question mark ?question mark
ROI ?question mark ?question mark 30%
Residual income ?question mark ?question mark $ 133,000
PR 13-38(Algo) Part 2: Suppose Division As sales margin increased to...
Required:
2. Suppose Division As sales margin increased to 35 percent, while its capital turnover remained constant. Compute the divisions new ROI.

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