The Central Division of Chemical Company has a return on investment of 20% and an investment turnover of 1.95. What is the profit margin? Round the percentage to two decimal places. a.15.38% b.12.31% c.8.21% d.10.26%

The Central Division of Chemical Company has a return on investment of 20% and an investment turnover of 1.95. What is the profit margin? Round the percentage to two decimal places. a.15.38% b.12.31% c.8.21% d.10.26%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Central Division of Chemical Company has a return on investment of 20% and an investment turnover of 1.95. What is the profit margin? Round the percentage to two decimal places.

a.15.38%

b.12.31%

c.8.21%

d.10.26%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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