Ivy Corp. has the following operating data for the past 2 years:
Year 1 | Year 2 | |
Return on Investment |
10% |
40% |
Residual Income |
$600 | ? |
Required Rate of return |
8% | 10% |
Average operating assets |
? | $42,000 |
Sales in year 2 is $60,000 more than sales in year 1.
The Company had the same capital turnover in both years.
(Q): What is the sales margin in Year 2? Use two decimal places in the answer (for example, if the answer is 21%, key in "0.21").
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
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