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The condensed income statement for the Consumer Products Division of Tri - State Industries Inc. is as follows ( assuming no support department charges )
The condensed income statement for the Consumer Products Division of TriState Industries Inc. is as follows assuming no support department charges:
Sales $
Cost of goods sold
Gross profit $
Administrative expenses
Operating income $
The manager of the Consumer Products Division is considering ways to increase the return on investment.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.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 $ of assets have been invested in the Consumer
Products Division. Round your answers for the profit margin and the rate of return on investment to the nearest whole number,
round your answer for the investment turnover to two decimal places.
Profit margin
Investment turnover
Rate of return on investment
b If expenses could be reduced by $ without decreasing sales, what would be the impact on the profit margin,
investment turnover, and return on investment for the Consumer Products Division? Round your answers for the profit margin
and the rate of return on investment to the nearest whole number, round your answer for the investment turnover to two
decimal places.
Profit margin
Investment turnover
Rate of return on investment
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