Answered: Montclair Industries had $720,000 in…

Montclair Industries had $720,000 in invested assets, sales of $810,000, income from operations amounting to $113,400, and a desired rate of return of 16%. What is the profit margin?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 5EB: During the current year. Plainfield Manufacturing earned income of $845,000 from total sales of...

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Question

Montclair Industries had $720,000 in invested assets, sales of $810,000, income from operations amounting to $113,400, and a desired rate of return of 16%. What is the profit margin?

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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