Question
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $24,048,000, net operating income of $2,765,520, and average
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $24,048,000, net operating income of $2,765,520, and average operating assets of $6,012,000. The company's minimum required rate of return is 17%. Required: a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.) a. Margin b. Turnover % C. Return on investment %
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