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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 10-13 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
$106,000,000 of assets have been invested in the Consumer Products Division.
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