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 of return on invested capital is 8 percent. sales revenue Income Average investment sales margin Capital turnover ROI Residual income Division A ? $ 590,000 ? 30% 2 ? Division B $ 10,000,000 $ 2,090,000 $ 2,550,000 ? ? ? ? Division C ? ? 35% ? 40% $ 125,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 12 percent. Note: Round "Capital turnover" answers to 2 decimal places.
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 of return on invested capital is 8 percent. sales revenue Income Average investment sales margin Capital turnover ROI Residual income Division A ? $ 590,000 ? 30% 2 ? Division B $ 10,000,000 $ 2,090,000 $ 2,550,000 ? ? ? ? Division C ? ? 35% ? 40% $ 125,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 12 percent. Note: Round "Capital turnover" answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1
Transcribed Image Text: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 of return
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
1,890,000
Division A
?
$ 590,000
24 %
1.00
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 12 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
?
30%
2
?
S
$
$
Division B
$ 10,000,000
$ 2,090,000
$ 2,550,000
Division B
41,300,000
8,260,000
10,325,000
%
?
?
?
?
%
Division C
?
?
$
35%
?
40%
$ 125,000
Division C
30 %
24 %
495,000
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