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 ? $ 430,000 $ 2,010,000 ? ? $ 2,510,000 ? 30% ? 35% 1 ? ? ? ? ? 30% ? $ 124,000 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 $ 41,400,000 Income $ 1,740,000 $ 8,280,000 Average investment S 10,350,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20% S 507,000

Principles of Accounting Volume 2
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Chapter9: Responsibility Accounting And Decentralization
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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
?
$ 430,000
$ 2,010,000
?
?
$ 2,510,000
?
30%
?
35%
1
?
?
?
?
?
30%
?
$ 124,000
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
$
41,400,000
Income
$
1,740,000
$
8,280,000
Average investment
S
10,350,000
Sales margin
20 %
%
25 %
Capital turnover
ROI
Residual income
1.00
%
%
20%
S
507,000
Transcribed Image Text: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 ? $ 430,000 $ 2,010,000 ? ? $ 2,510,000 ? 30% ? 35% 1 ? ? ? ? ? 30% ? $ 124,000 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 $ 41,400,000 Income $ 1,740,000 $ 8,280,000 Average investment S 10,350,000 Sales margin 20 % % 25 % Capital turnover ROI Residual income 1.00 % % 20% S 507,000
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