Profit Margin, Investment Turnover, and return on investment:

The condensed income statements for the consumer product division of Fargo Industries Inc. is as follows ( assuming no service department charges):

Sales. $980,000

Cost of goods sold. $441,000

Gross profit $539,000

Administrative expenses $245,00

Income from operations $294,000

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 $2,450,000 of assets have been invested in the Consumer products division. Round the investment turnover to one decimile place.

Profit margin. %

Investment turnover. %

Rate of return on investment. %

B. If expenses could be reduced by $49,000 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

Profit margin. %

Investment turnover. %

Rate of return on investment %