Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. profit margin, investment turnover, and return on

Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer...

50.1K

Verified Solution

Question

Accounting

Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $912,000 Cost of goods sold 410,400 Gross profit $501,600 Administrative expenses 228,000 Income from operations $273,600 The manager of the Consumer Products Division is considering ways to increase the return on investment. 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 $1,520,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin % Investment turnover Rate of return on investment % b. If expenses could be reduced by $45,600 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment turnover to one decimal place. Profit margin % Investment turnover Rate of return on investment %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Write a literature survey about DC power supply circuit and audio amplifier circuit to preform a...

Electrical Engineering
Q

57 Four identical charge particles having charge q are placed fixed at the vertices of...

Physics
Q

Solve for x to the nearest 10th 320 6790 0 88 3 2 450 MED...

Calculus
Q

Use n 6 and p 0 2 to complete parts a through d below a...

Calculus
Q

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect...

Accounting
Q

Kokomo Manufacturing produces snow shovels. The selling price per snow shovel is $29.00. There is...

Accounting
Q

Un inversionista compra un bono de valor nominal de $1,000 a 20 aos que paga...

Accounting
Q

1) A company recieved cash proceeds of $ 206,948 on a bond issue with a...

Accounting
Q

The following standards for variable manufacturing overhead have been establshed for a company that makes...

Accounting
Q

.Which cost definition from Exhibit 2.5 is being used by the consumer groups? The pharmaceutical...

Accounting
Q

Wight Corporation has provided its contribution format income statement for June. The company produces and...

Accounting
Q

Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of...

Accounting