Western Division for Luna Corporation has a rate of return on investment of 35% and an investment turnover of 2.5. What is the profit margin? a. 14% b. 35% c. 87.5% d. 17.5%

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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Western Division for Luna Corporation has a rate of return on investment of
35% and an investment turnover of 2.5. What is the profit margin?
a. 14%
b. 35%
c. 87.5%
d. 17.5%
Transcribed Image Text:Western Division for Luna Corporation has a rate of return on investment of 35% and an investment turnover of 2.5. What is the profit margin? a. 14% b. 35% c. 87.5% d. 17.5%
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