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
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
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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