Question
1.XYZ Company has $72,000 of operating income, a profit margin (i.e. sales margin) of 15%, a target rate of return of 10%, and asset turnover
1.XYZ Company has $72,000 of operating income, a profit margin (i.e. sales margin) of
15%, a target rate of return of 10%, and asset turnover (i.e. capital turnover) of 3 times.
The sales in dollars for XYZ Company would be closest to which of the following?
[ROUND ANSWER TO THE NEAREST DOLLAR]
2. Your Corporation has an ROI of 25%, total assets of $5,250,000, and current liabilities of
$950,000. What is Your Corporation's operating income?
3. Your other Corporation has fixed costs of $173353, operating income of $72,000, a profit
margin of 12%, and asset turnover of 3.0. The return on investment (ROI) for Your other
Corporation would be what?
[SHOW PERCENTAGE AS AN INTEGER. E.G. 18 for 18% (not 0.18)]
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