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A division has profit of $40 500, sales of $495 000 and an investment base of $225 000. If the required charge for capital is
A division has profit of $40 500, sales of $495 000 and an investment base of $225 000. If the required charge for capital is 18 per cent, determine:
- the profit margin
- the asset turnover
- the return on investment
- the relationship between the three measures in parts (a) to (c)
- the residual income.
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