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Hi , the asnwers to the question i posted was not correct. Im wondering if someone will be able to help me . Thank you.
Hi the asnwers to the question i posted was not correct. Im wondering if someone will be able to help me Thank you.
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Profit margin, investment turnover, and return on investment
The condensed income statement for the Consumer Products Division of TriState Industries Inc. is as follows assuming no support department charges:
Sales $
Cost of goods sold
Gross profit $
Administrative expenses
Operating income $
The manager of the Consumer Products Division is considering ways to increase the return on investment.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $ of assets have been invested in the Consumer Products Division. Round your answers for the profit margin and the rate of return on investment to the nearest whole number, round your answer for the investment turnover to two decimal places.
Profit margin fill in the blank
Investment turnover fill in the blank
Rate of return on investment fill in the blank
If expenses could be reduced by $ without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round your answers for the profit margin and the rate of return on investment to the nearest whole number, round your answer for the investment turnover to two decimal places.
Profit margin fill in the blank
Investment turnover fill in the blank
Rate of return on investment fill in the blank
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Operating income divided by sales equals profit margin. Sales divided by invested assets equals investment turnover. Multiply these two values for the rate of return.
Reducing expenses would increase the operating income. Recalculate the percentages.
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