A company's division has sales of $2,610,000, income of $991,800, and average assets of $1,800,000. Compute the division's profit margin, return on investment, and investment turnover. Compute the Division's Profit Margin.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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A company's division has sales of $2,610,000, income of $991,800, and average assets of $1,800,000. Compute the division's profit
margin, return on investment, and investment turnover.
Compute the Division's Profit Margin.
Numerator:
Denominator:
Profit Margin
Profit margin
Compute the Division's Return on investment.
Numerator:
Denominator:
Return on investment
Return on investment
Compute the Division's Investment Turnover.
Numerator:
Denominator:
Investment Turnover
%3D
Investment turnover
Transcribed Image Text:A company's division has sales of $2,610,000, income of $991,800, and average assets of $1,800,000. Compute the division's profit margin, return on investment, and investment turnover. Compute the Division's Profit Margin. Numerator: Denominator: Profit Margin Profit margin Compute the Division's Return on investment. Numerator: Denominator: Return on investment Return on investment Compute the Division's Investment Turnover. Numerator: Denominator: Investment Turnover %3D Investment turnover
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