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 ? $ 11,000,000 ? $520,000 $ 2,130,000 ? ? $ 2,680,000 ? 20% ? 25% 1 ? P ? ? ? 30% ? $ 138,000 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 $ 8,866,000 Average investment $ 10,075,000 Sales margin 20% % 25 % Capital turnover ROI Residual income 1.00 % % 20 % S 471,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.5.3MBA
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Urmila ben 

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
?
$ 11,000,000
?
$520,000
$ 2,130,000
?
?
$ 2,680,000
?
20%
?
25%
1
?
P
?
?
?
30%
?
$ 138,000
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
$
8,866,000
Average investment
$
10,075,000
Sales margin
20%
%
25 %
Capital turnover
ROI
Residual income
1.00
%
%
20 %
S
471,000
Transcribed Image Text: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 ? $ 11,000,000 ? $520,000 $ 2,130,000 ? ? $ 2,680,000 ? 20% ? 25% 1 ? P ? ? ? 30% ? $ 138,000 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 $ 8,866,000 Average investment $ 10,075,000 Sales margin 20% % 25 % Capital turnover ROI Residual income 1.00 % % 20 % S 471,000
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