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Profit Margin, Investment Turnover. and Return on Investment The condensed income statement for the Consumer Products Division of Tri-state Industries ince is as follows (assuming
Profit Margin, Investment Turnover. and Return on Investment The condensed income statement for the Consumer Products Division of Tri-state Industries ince is as follows (assuming no support department allocations): The manager of the Consumer Products Division is considering wayi to increase the retum on inveatment. a. Using the DuPont formule for retum on investment, determine the profit margin. irivestment turnovec, and retum on imvestment of the Coeisumer Products Division, assumie that $1,240,000 of assets have been invested in the Consumed Froducts ovision. Round the avectinent turnover to one deomal place. b. If expenses could be reduced by $37,200 without dereresing salen, what wauld be the impack on the profit margin, imvestment tumovec, and return on investment for thie Consumer Products Division? Round the imvestment turnover to one decmal place
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