What return on sales for the k division would need to have

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BUJ & Associates has four divisions, each of which has a minimum required return on investment of 15 percent. One of its divisions, K Division, had residual income of $4 million in 2014. This division had an investment base of $20 million and its asset turnover was two times.

Question 1: To raise its residual income by $1 million, holding sales and investment constant, the K Division would need to have what return on sales?

Reference no: EM132590377

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