Question
Division 3 of Baritune Enterprises reported sales of $820,000, NOPAT totaling $61,500, interest expense of $8,000, and invested capital totaling $512,500. Its income tax rate
Division 3 of Baritune Enterprises reported sales of $820,000, NOPAT totaling $61,500, interest expense of $8,000, and invested capital totaling $512,500. Its income tax rate is 30 percent. As it pertains to evaluating investment centers, how much is Division 3s profit margin?
A. 12.0%
B. 7.5%
C. 8.2%
D. 1.6%
Hardin Division of WestCo has sales of $300,000 and NOPAT of $15,000. The companys invested capital is $240,000 and its non-interest-bearing current liabilities are $20,000. What is Hardin Divisions profit margin as it relates to investment center performance evaluation?
A. 8.0%
B. 6.25%
C. 5.0%
D. 6.8%
Division 3 of Baritune Enterprises reported sales of $820,000, NOPAT totaling $61,500, interest expense of $8,000, and invested capital totaling $512,500. Its income tax rate is 30%. As it pertains to evaluating investment centers, how much is Division 3s investment turnover?
A. 1.60
B. 7.50
C. 12.00
D. 0.625
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