Question
Margin = Segment margin/Sales Asset turnover = Sales/Average assets Return on Investment = Margin*Asset Turnover Margin Asset turnover ROI Polyester fibers 17% 1.3 22.1% Rope
| Margin = Segment margin/Sales | |||
| Asset turnover = Sales/Average assets | |||
| Return on Investment = Margin*Asset Turnover | |||
| Margin | Asset turnover | ROI | |
| Polyester fibers | 17% | 1.3 | 22.1% |
| Rope | 32% | 0.8 | 25.6% |
| Nylon fibers | 10% | 3.2 | 32.0% |
1. Compare the margin and asset turnover for the three divisions and make suggestions for increas-ing the return on investment of each division.
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Financial Finesse An Accounting Guide For Entrepreneurs
Authors: TaShara Ramese
1st Edition
1732510903, 978-1732510906
