The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 15 % 20 % Net operating income ? $ 400,000 Turnover ? 2 Margin ? ? Sales $ 3,220,000 ? Millard Division's margin in Year 2 was 100% of the margin in Year 1. The sales for Year 2 were:

The Millard Division's operating data for the past two years are provided below: Year 1 Year 2 Return on investment 15 % 20 % Net operating income ? $ 400,000 Turnover ? 2 Margin ? ? Sales $ 3,220,000 ? Millard Division's margin in Year 2 was 100% of the margin in Year 1. The sales for Year 2 were:

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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Question

The Millard Division's operating data for the past two years are provided below:

	Year 1	Year 2
Return on investment		15	%		20	%
Net operating income		?		$	400,000
Turnover		?			2
Margin		?			?
Sales	$	3,220,000			?

Millard Division's margin in Year 2 was 100% of the margin in Year 1.

The sales for Year 2 were:

Formula Formula ROI (%) = Net Income Principal Amount × 100

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