Leete Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income 14.000.000 9.660.000 4,340,000 3,620,000 720,000 The Company's average operating assets were $8,000,000. It's minimum required return was 8%. 1. What is the company's margin percentage? 2. What is the company's turnover? 3. What is the company's return on investment? 4. What is the company's residual income?
Leete Inc. reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income 14.000.000 9.660.000 4,340,000 3,620,000 720,000 The Company's average operating assets were $8,000,000. It's minimum required return was 8%. 1. What is the company's margin percentage? 2. What is the company's turnover? 3. What is the company's return on investment? 4. What is the company's residual income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Leete Inc. reported the following results from last year's operations:
Sales
Variable expenses
Contribution margin
Fixed expenses
Net operating income
14.000.000
9.660.000
4,340,000
3,620,000
720,000
The Company's average operating assets were $8,000,000. It's minimum required
return was 8%.
1. What is the company's margin percentage?
2. What is the company's turnover?
3. What is the company's return on investment ?
4. What is the company's residual income?
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