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Seaside Boats, Inc. has a minimum required rate of return of 22%. During the current year, the powerboat divisions return on investment is 14% and
Seaside Boats, Inc. has a minimum required rate of return of 22%. During the current year, the powerboat divisions return on investment is 14% and the divisions turnover ratio is 1.60. The powerboat division has average operating assets of $420,000 and liabilities of $150,000.
a. What is the powerboat divisions net operating income?
b. What is the powerboat divisions sales revenue?
c. What is the powerboat divisions margin?
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