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c Discussion #5: G X cture.com/courses/1243453/ discussion_topics/4618772 GNC Holdings Inc. is a leading retailer of health and nutrition products, which are sold through both company-operated
c Discussion #5: G X cture.com/courses/1243453/ discussion_topics/4618772 GNC Holdings Inc. is a leading retailer of health and nutrition products, which are sold through both company-operated (3,500 outlets) and franchised retail (3,200 outlets) stores. In addition, GNC manufactures many of the products that it sells through its company-operated and franchised channels. As such, GNC's operating segments are Retail, Franchise, and Manufacturing. The Retail segment is made up of company-operated stores, and the Franchise segment is made up of franchised stores. Recent financial information from these segments are as follows (in millions): Franchise Manufacturing Retail Sales $433 $486 $1,939 Income from 349 157 90 Operations Invested 512 407 1,573 Assets A. Determine the profit nmargin for each segment. (Round percentages to one decimal place.) B. Why might the profit margin of the Franchise segment be larger than the other two segments? C. Determine the investment turnover for each segment. (Round to one decimal place.) OEt gment is made up of franchised stores. Recent financial information from ese segments are as follows (in millions): Franchise Manufacturing Retail Sales $1,939 $433 $486 Income from Operations 349 157 90 Invested Assets 1,573 512 407 A.Determine the profit margin for each segment. (Round percentages to one decimal place.) B. Why might the profit margin of the Franchise segment be larger than the other two segments? C. Determine the investment turnover for each segment. (Round to one I decimal place.) D. Use the Du Pont formula to determine the return on investment for each segment. (Round percentages to one decimal place.) E. What is the source of revenues for the Manufacturing segment? Searchentries or author Unread OH
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