The profit margin for Division M is 7% and the investment turnover is 1.50. What is the rate of return on investment for Division M? a. 9.3% b. 10.5% c. 7.8% d. 12.0%

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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The profit margin for Division M is 7% and the investment turnover is 1.50.
What is the rate of return on investment for Division M?
a. 9.3%
b. 10.5%
c. 7.8%
d. 12.0%
Transcribed Image Text:The profit margin for Division M is 7% and the investment turnover is 1.50. What is the rate of return on investment for Division M? a. 9.3% b. 10.5% c. 7.8% d. 12.0%
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