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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:

  1. the profit margin
  2. the asset turnover
  3. the return on investment
  4. the relationship between the three measures in parts (a) to (c)
  5. the residual income.

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