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How do you do this? [The following information applies to the questions displayed below.) Megamart provides the following information on its two investment centers. Investment
How do you do this?
[The following information applies to the questions displayed below.) Megamart provides the following information on its two investment centers. Investment Center Electronics Sporting goods Sales $ 34, 800,000 20, 100,000 Income $ 3, 306, 000 2, 412,000 Average Assets $ 17,400,000 13,400,000 Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Compute profit margin for each center. Which center generates more income per dollar of sales? = Profit Margin Profit Margin Numerator: | Denominator: Investment Center 1 Electronics / Sporting Goods 1 Which center generates more income per dollar of sales? Il Compute investment turnover for each center. Which department is most efficient at generating sales from average invested assets? Investment Turnover Numerator: | Denominator: Investment Center 1 Electronics / Sporting Goods Which department is most efficient at generating sales from average invested assets? Investment Turnover =Step by Step Solution
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