Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

($ millions) Beverage Division Cheese Division Invested assets, beginning $ 2,669 $ 4,462 Invested assets, ending 2,597 4,404 Sales 2,685 3,929 Operating income 353 638 rev: 11_25_2020_QC_CS-242542 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year

Sagot :

anthougo

Answer:

                                            Beverage Division   Cheese Division

1. Return on investment                   12.89%                     18.25%

2. Profit margin                                  13.15%                     16.24%

3. Investment turnover                      1.02                         0.89

Explanation:

a) Data and Calculations:

                                            Beverage Division   Cheese Division

Invested assets, beginning        $ 2,669                   $ 4,462

Invested assets, ending                2,597                       4,404

Average invested assets           $ 2,633                    $ 4,433  

Sales                                              2,685                       3,929

Operating income                            353                          638

Return on investment                   12.89%                     18.25%

Profit margin                                  13.15%                     16.24%

Investment turnover                      1.02                         0.89

Return on investment  = Profit margin/Investment turnover

Beverage = 13.15%/1.02 = 12.89%

Cheese = 16.24%/0.89 = 18.25%

Profit margin = Operating income/Sales * 100

Beverage = $353/2,685 * 100 = 13.15%

Cheese = $638/3,929 * 100 = 16.24%

Investment turnover = Sales/Average invested assets

Beverage = $2,685/$2,633 = 1.02

Cheese = $3,929/$4,433 = 0.89

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.