OCTOBER CORPORATION The condensed income statement for the importing division of OCTOBER CORPORATION is as follows (assuming no service-department charges): Sales Cost of goods sold Gross profit $1,200,000 600,000 600,000 300,000 $300,000 Administrative expenses Income from operations Invested assets at the start of the year were $1,900,000. At the end of the year, invested assets were $2,100,000. The manager of the importing division is considering ways to increase the rate of return on investment. REQUIRED: 1) Using the DuPont formula (the computation shown in the section entitled "Further Analysis of Return on Investment") for rate of return on investment, determine the profit margin, investment turnover and ROI of the importing division. The DuPont method involves breaking the return on investment up into 2 component parts as shown on the bottom of page 528:

OCTOBER CORPORATION The condensed income statement for the importing division of OCTOBER CORPORATION is as follows (assuming no service-department charges): Invested assets at the start of the year were $1,900,000. At the end of the year, invested assets were $2,100,000. The manager of the importing division is considering ways to increase the rate of return on investment. REQUIRED: 1) Using the DuPont formula (the computation shown in the section entitled "Further Analysis of Return on Investment") for rate of return on investment, determine the profit margin, investment turnover and ROI of the importing division. The DuPont method involves breaking the return on investment up into 2 component parts as shown on the bottom of page 528