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Question 46 of 50 6 Points Company A, manufacturer of prefabricated houses for over 20 years, designated the Division 1 as an investment center.
Question 46 of 50 6 Points Company A, manufacturer of prefabricated houses for over 20 years, designated the Division 1 as an investment center. Presently, Division 1 generated a sales revenue of P4,800,000, net operating income of P696,000 and reported an asset balance of P4,000,000. The president has indicated that the division's rate of return on investment must be increased to at least 20% by end of the next year if operations are to continue. If Division 1 were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the president's required ROI?
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