Answered: Atlantic Division for Coffee Company…

Atlantic Division for Coffee Company has a rate of return on investment of 35% and an investment turnover of 1.75. What is the profit margin? a. 35% b. 20% c. 25% d. 61.25%

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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Need help with this accounting questions

Atlantic Division for Coffee Company has a rate of return on investment of 35% and an
investment turnover of 1.75.
What is the profit margin?
a. 35%
b. 20%
c. 25%
d. 61.25%

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Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested assets of 180,000, and sales of 720,000. Use the DuPont formula to compute the return on investment and show (A) the profit margin, (B) the investment turnover, and (C) the return on investment.
What is the profit margin
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