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EX 1 0 - 1 3 Profit margin, investment turnover, and return on investment The condensed income statement for the Consumer Products Division of Hydra
EX Profit margin, investment turnover, and return on investment
The condensed income statement for the Consumer Products Division of Hydra Industries Inc. is
as follows assuming no support department allocations:
The manager of the Consumer Products Division is considering ways to increase the return on
investment.
a Using the DuPont formula for return on investment, determine the profit margin, invest
ment turnover, and return on investment of the Consumer Products Division, assuming that
$ of assets have been invested in the Consumer Products Division.
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