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Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Sales Income Average
Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).
Investment Center | Sales | Income | Average Invested Assets | ||||||
Electronics | $ | 45,000,000 | $ | 3,420,000 | $ | 18,000,000 | |||
Sporting goods | 25,200,000 | 2,520,000 | 14,000,000 | ||||||
Compute profit margin and investment turnover for each department. Which department generates the most net income per dollar of sales? Which department is most efficient at generating sales from average invested assets?
Profit Margin Choose Numerator: Choose Denominator: Profit Margirn Profit Margin Investment Center Electronics Sporting Goods Which department generates the most net income per dollar of sales? Investment Turnover Choose Numerator: Choose Denominator: | = | Investment Turnover Investment Center Electronics Sporting Goods Which department is most efficient at generating sales from average invested assets? =| Investment Turnover
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