Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales. Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue. To Calculate: Requirement 1: Profit Margin of each division

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Conclusion

Professional Products has the highest profit margin

To determine

Requirement 2: Investment Turnover of each division

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$

Conclusion

Active Cosmetics has the best investment turnover

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Lui Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at March 31: ACCOUNT ACCOUNT NO. Date Item Debit Credit BalanceDebit BalanceCredit March 1 Bal., 25,000 units, 10% completed 21,250 31 Direct materials, 600,000 units 450,000 471,250 31 Direct labor 244,600 715,850 31 Factory overhead 415,820 1,131,670 31 Goods transferred, 605,000 units ? 31 Bal., ? units, 45% completed ? Required:1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department.

Jane Yoakim, President of Estefan Co., recently read an article that claimed that at least 100 of the country's 500 largest companies were either adopting or considering adopting the last in, first out (LIFO) method for valuing inventories. The article stated that the firms were switching to LIFO to (1) neutralize the effect of inflation in their financial statements, (2) eliminate inventory profits, and (3) reduce income taxes. Ms. Yoakim wonders if the switch would benefit her company. Estefan currently uses the first-in, first-out (FIFO) method of inventory valuation in its periodic inventory system. The company has a high inventory turnover rate, and inventories represent a significant proportion of the assets. Ms. Yoakim has been told that the LIFO system is more costly to operate and will provide little benefit to companies with high turnover. She intends to use the inventory method that is best for the company in the long run rather than selecting a method just because it is the…

please help with how im supposed to solve this

Answer 2

Question

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Conclusion

Professional Products has the highest profit margin

To determine

Requirement 2: Investment Turnover of each division

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$

Conclusion

Active Cosmetics has the best investment turnover

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Conclusion

Professional Products has the highest profit margin

To determine

Requirement 2: Investment Turnover of each division

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$

Conclusion

Active Cosmetics has the best investment turnover

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Conclusion

Professional Products has the highest profit margin

To determine

Requirement 2: Investment Turnover of each division

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$

Conclusion

Active Cosmetics has the best investment turnover

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Conclusion

Professional Products has the highest profit margin

To determine

Requirement 2: Investment Turnover of each division

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$

Conclusion

Active Cosmetics has the best investment turnover

Answer 6

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Conclusion

Professional Products has the highest profit margin

Answer 7

Chapter 24, Problem 21E

To determine

Introduction:

Profit Margin: Profit margin is a profitability ratio which calculates the relation between net income and sales.

Investment Turnover: Asset or Investment turnover ratio measures the sales generated by a company relative to the value of its assets. It is used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

To Calculate:

Requirement 1: Profit Margin of each division

Answer 8

Expert Solution

Answer to Problem 21E

Solution:

Profit Margin of –

Professional Products = 20.32%

Consumer Products = 18.52%

Luxury Products = 17.55%

Active Cosmetics = 20.06%

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Professional Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{552}{2717} x 100 \\ = 20.32 % \end{array}$

Consumer Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{1765}{9530} x 100 \\ = 18.52 % \end{array}$

Luxury Products

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{791}{4507} x 100 \\ = 17.55 % \end{array}$

Active Cosmetics

$\begin{array}{l} P r o f i t M a r g i n = \frac{N e t I n c o m e}{S a l e s} x 100 \\ = \frac{278}{1386} x 100 \\ = 20.06 % \end{array}$

Answer 13

Conclusion

Professional Products has the highest profit margin

Answer 14

To determine

Requirement 2: Investment Turnover of each division

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$

Conclusion

Active Cosmetics has the best investment turnover

Answer 15

To determine

Requirement 2: Investment Turnover of each division

Answer 16

Expert Solution

Explanation of Solution

Investment Turnover of –

Professional Products = 1.12

Consumer Products = 1.66

Luxury Products = 1.17

Active Cosmetics = 1.68

Professional Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{2717}{(2324 + 2516) / 2} \\ = 1.12 \end{array}$

Consumer Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{9530}{(5994 + 5496) / 2} \\ = 1.66 \end{array}$

Luxury Products

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{4507}{(3651 + 4059) / 2} \\ = 1.17 \end{array}$

Active Cosmetics

$\begin{array}{l} I n v e s t m e n t T u r n o v e r = \frac{N e t S a l e s}{A v e r a g e A s s e t s} \\ = \frac{1386}{(830 + 817) / 2} \\ = 1.68 \end{array}$