Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Average Invested Assets $16,600,000 12,600,000 Compute profit margin and investment turnover for each department. Which department generates the most net ncome per dollar of sales? Which department is most efficient at generating sales from average invested assets?

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Investment Center Electronics Sporting goods Sales Income $39,840,000 $2,988,000 25,200,000 2,142,000 Average Invested Assets $16,600,000 12,600,000 Compute profit margin and investment turnover for each department. Which department generates the most net ncome per dollar of sales? Which department is most efficient at generating sales from average invested assets?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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