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Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the Consumer Products Division of Milner Industries Inc. is as
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the Consumer Products Division of Milner Industries Inc. is as follows (assuming no service department: charges): Sales $7,000,000 Cost of goods sold 4,500,000 Gross profit $2,500,000 Administrative expenses 750,000 Income from operations $1,750,000 The manager of the Consumer Products Division is considering ways to increase the rate of return on investment. Using the DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment of the Consumer Products Division, assuming that $5,000,000 of assets have been invested in the Consumer Products Division. If required, round the investment turnover to one decimal place. Profit margin Investment turnover Rate of return on investment If expenses could be reduced by $350,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and rate of return on investment for the Consumer Products Division? If required, round the investment turnover to one decimal places. Profit margin Investment turnover Rate of return on investment Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the Consumer Products Division of Milner Industries Inc. is as follows (assuming no service department: charges): Sales $7,000,000 Cost of goods sold 4,500,000 Gross profit $2,500,000 Administrative expenses 750,000 Income from operations $1,750,000 The manager of the Consumer Products Division is considering ways to increase the rate of return on investment. Using the DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment of the Consumer Products Division, assuming that $5,000,000 of assets have been invested in the Consumer Products Division. If required, round the investment turnover to one decimal place. Profit margin Investment turnover Rate of return on investment If expenses could be reduced by $350,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and rate of return on investment for the Consumer Products Division? If required, round the investment turnover to one decimal places. Profit margin Investment turnover Rate of return on investment
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