Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Gabbe Industries is a division of a major corporation. Last year the division had total sales of $32,948,550, net operating income of $4,069,146, and average operating assets of $9,027,000. The company's minimum required rate of return is 22%.
Required:
a. What is the division's margin? (Round your percentage answer to 2 decimal places.)
b. What is the division's turnover? (Round your answer to 2 decimal places.)
c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.)

Sagot :

Tundexi

Answer:

a. Division's margin = Net operating income / Total sales

Division's margin = $4,069,146 / $32,948,550

Division's margin = 0.1235000

Division's margin = 12.35%

b. Division's turnover = Total sales / Average operating assets

Division's turnover = $32,948,550 / $9,027,000

Division's turnover = 3.65 times

c. Division's return on investment = Division margin * Division turnover

Division's return on investment = 12.35% * 3.65 times

Division's return on investment = 45.08%

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.