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 ? Division B Division C $ 12,000,000 ? $ 430,000 $ 2,150,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? ? 30% ? $ 131,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested apital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,700,000 Income $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000
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 ? Division B Division C $ 12,000,000 ? $ 430,000 $ 2,150,000 ? ? $ 2,560,000 ? 20% ? 25% 3 ? ? ? ? ? 30% ? $ 131,000 Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested apital is 8 percent. Note: Round "Capital turnover" answers to 2 decimal places. Division A Division B Division C Sales revenue $ 40,700,000 Income $ 1,840,000 $ 8,140,000 Average investment $ 10,175,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20 % $ 489,000
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...
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