Answered: The profit margin for Division K is 9%…

The profit margin for Division K is 9% and the investment turnover is 1.20. What is the rate of return on investment for Division K? a. 10.8% b. 6.7% c. 7.5% d. 9.6%

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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Question

What is the rate of return on investment for division k ? General accounting

The profit margin for Division K is 9% and the investment
turnover is 1.20. What is the rate of return on investment for
Division K?
a. 10.8%
b. 6.7%
c. 7.5%
d. 9.6%

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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