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(G&G) operate a fast-growing business. The company looks to acquire additional companies as a strategy to accelerate its growth. The company has identified (P&L) as
(G&G) operate a fast-growing business. The company looks to acquire additional companies as a strategy to accelerate its growth. The company has identified (P&L) as a target company for purchase. Operating results for the two companies are as follows:
G&G | P&L | |
Sales | 800,000 | 240,000 |
Variable Expenses | 480,000 | 180,000 |
Contribution Margin | 320,000 | 60,000 |
Fixed Expenses | 200,000 | 42,000 |
Net Income | 120,000 | 18,000 |
Assets | 500,000 | 100,000 |
Select the correct Dupont ratio(s). NOTE: "Overall Results" reflect DuPont ratios if the two companies were combined (added together).
Group of answer choices
P&L: ROI = 7.50%
Overall results: ROI = 21.0%
None of the other answers are correct
Overall results: Margin = 18.0%
G&G: Asset turnover = 1.60
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