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Required information [The following information applies to the questions displayed below.) Megamart provides the following information on its two investment centers. Investment Center Sales Income
Required information [The following information applies to the questions displayed below.) Megamart provides the following information on its two investment centers. Investment Center Sales Income Electronics $ 42,000,000 19,456,000 $ 3,360,000 2,432,000 Average Assets $ 16,800,000 12,800,000 Sporting goods Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which department is most efficient at generating sales from average invested assets? Investment Profit Margin Turnover Compute profit margin for each center. Which center generates more income per dollar of sales? Numerator: Investment Center Electronics Sporting Goods Profit Margin Denominator: Which center generates more income per dollar of sales? Profit Margin = Profit Margin Investment Turnover > Profit Margin Investment Turnover Compute investment turnover for each center. Which department is most efficient at generating sales from average invested assets? Investment Turnover Numerator: / Denominator: Investment Center Electronics Sporting Goods Investment Turnover Which department is most efficient at generating sales from average invested assets
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