EX 13-25 (Algo) Improving ROI (LO 13-3) The following data pertain to Dakota Division's most recent year of operations. Income Sales revenue Average invested capital Required: $ 6,450,000 129,000,000 32,250,000 Which of the following ways could improve the Dakota Division's ROI to 25 percent? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available. Improve the sales margin to 6 percent by increasing income to $7,740,000. Improve the sales margin to 6.25 percent by increasing income to $8,062,500. Improve the turnover to 4.167 by decreasing average invested capital to $30,960,000 Improve the turnover to 5.000 by decreasing average invested capital to $25,800,000.

A7

Required information Use the following information for the Problems below: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate o on invested capital is 8 percent. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income Division A ? $ 440,000 ? 40% 2 ? ? Division A $ 8,150,000 $ 1,630,000 $ 8,150,000 20 % 1.00 $ 978,000 20% Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return capital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. $ $ $ Division B $ 10,000,000 $ 2,160,000 $ 2,600,000 $ Division B 40,300,000 8,866,000 10,075,000 22 % 4.00 88 % ? ? ? 8,060,000 Division C ? $ ? ? 45% ? 40% $ 139,000 Division C 25 % 20 % 471,000

Meman