The profit margin for Division C is 12.4%, and the investment turnover is 1.2. What is the return on investment for Division C? Round the percentage to two decimal places.

a.10.42%

b.16.08%

c.19.68%

d.14.88%

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

	Rails Division	Locomotive Division	Corporate Total
Cost of goods sold	$ 47,200	$30,720
Direct operating expenses	27,200	20,040
Sales	108,000	78,000
Interest expense			$ 2,040
General overhead			18,160
Income tax			4,700

The gross profit for the Locomotive Division is

a.$57,960

b.$27,240

c.$14,790

d.$47,280