What is the return on sales for the adrenaline division


Switchfoot Company has the following information about its two divisions. The divisions are investment centers. Switchfoot's required rate of return is 11%.

Audio Division Adrenaline Division
NOPAT $15,000,000 $25,000,000
Sales $100,000,000 $125,000,000
Assets $200,000,000 $200,000,000

Reference: Ref 12-6

What is the return on sales for the Adrenaline Division?

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