Profit margin, investment turnover, and return on investment

The condensed income statement for the Consumer Products Division of Hydra Industries Inc. is as follows (assuming no support department allocations):

Line Item Description	Amount
Sales	$1,140,000
Cost of goods sold	(513,000)
Gross profit	$627,000
Administrative expenses	(342,000)
Operating income	$285,000

The manager of the Consumer Products Division is considering ways to increase the return on investment.

a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,900,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place.

Line Item Description	Answer
Profit margin	fill in the blank 1 %
Investment turnover	fill in the blank 2
Return on investment	fill in the blank 3 %

b. If expenses could be reduced by $57,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment turnover to one decimal place.

Line Item Description	Answer
Profit margin	fill in the blank 4 %
Investment turnover	fill in the blank 5
Return on investment	fill in the blank 6 %