The following data pertain to three divisions of Nevada Aggregates, Inc. The company’s required rate of return on invested capital is 8 percent. Division A Division B Division C Sales revenue ? $ 10,000,000 ? Income $ 400,000 $ 2,000,000 ? Average investment ? $ 2,500,000 ? Sales margin 20 % ? 25 % Capital turnover 1 ? ? ROI ? ? 20 % Residual income ? ? $ 120,000 Required: Suppose Division A’s sales margin increased to 25 percent, while its capital turnover remained constant. Compute the division’s new ROI.

"jake’s roof repair has provided the following data concerning its costs: fixed cost per month cost per repair-hour wages and salaries $ 20,900 $ 15.00 parts and supplies $ 7.70 equipment depreciation $ 2,800 $ 0.35 truck operating expenses $ 5,720 $ 1.60 rent $ 4,690 administrative expenses $ 3,850 $ 0.50 for example, wages and salaries should be $20,900 plus $15.00 per repair-hour. the company expected to work 2,600 repair-hours in may, but actually worked 2,500 repair-hours. the company expects its sales to be $47.00 per repair-hour. required: compute the company’s activity variances for may."