The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income from Operations Invested Assets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round profit margin to two decimal places, investment turnover to four decimal places and rate of return on investment to one decimal place. Division E Division F Division G Profit Margin % % % Investment Turnover Rate of return on investment % % % b. Which division is the most profitable per dollar invested?
The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Sales Income from Operations Invested Assets Division E $5,000,000 $550,000 $2,400,000 Division F 4,800,000 860,000 2,500,000 Division G 7,000,000 860,000 2,900,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of return on investment for each division. Round profit margin to two decimal places, investment turnover to four decimal places and rate of return on investment to one decimal place. Division E Division F Division G Profit Margin % % % Investment Turnover Rate of return on investment % % % b. Which division is the most profitable per dollar invested?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter24: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 16E
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The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows:
| Sales | Income from Operations |
Invested Assets |
||||
| Division E | $5,000,000 | $550,000 | $2,400,000 | |||
| Division F | 4,800,000 | 860,000 | 2,500,000 | |||
| Division G | 7,000,000 | 860,000 | 2,900,000 |
a. Using the DuPont formula, determine the profit margin, investment turnover, and rate of
| Division E | Division F | Division G | |||||||
| Profit Margin | % | % | % | ||||||
| Investment Turnover | |||||||||
| Rate of return on investment | % | % | % |
b. Which division is the most profitable per dollar invested?
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