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Eber Wares is a division of a major corporation. The following data are for the latest year of operations: Sales $ 31,000,000 Net operating income
Eber Wares is a division of a major corporation. The following data are for the latest year of operations:
Sales | $ | 31,000,000 | |
Net operating income | $ | 1,176,000 | |
Average operating assets | $ | 7,610,000 | |
The company%u2019s minimum required rate of return | 17.9 | % | |
|
Required: | |
a. | What is the division%u2019s margin? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
Profit margin | % |
b. | What is the division%u2019s turnover? (Round your answer to 2 decimal places.) |
Asset turnover ratio |
c. | What is the division%u2019s return on investment (ROI)? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) |
Return on investment | % |
d. | What is the division%u2019s residual income? (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.) |
Residual income | $ |
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