24.9

Gross profit Profit Margin, Investment Turnover, and Return on Investment The condensed Income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department cost allocations): Sales $1,632,000 Cost of goods sold 734,400 $897,600 Administrative expenses 489,600 Income from operations $408.000 The manager of the Consumer Products Division is considering ways to increase the return on investment, 5. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $2,720,000 of assets have been invested in the Constimer Products Division. Round the investment turnover to one decimal place.