
Concept introduction:
Return on investment is a ratio calculated to determine how much return our invested assets are generating. A high return on Investment shows that investments are generating higher returns.
Return on Investment of ZNet Co.
Concept introduction:
Profit Margin:
Profit margin is a factor of determining profitability of a company. The higher the profit margin, the higher is the growth of the company. It is calculated by dividing net profit or net income to the sales of the company.
Profit Margin of ZNet Co.
Return on investment after 20% increase in sales.
(4)
Concept introduction:
Investment Turnover:
Investment turnover is used to determine capacity of an organisation to generate revenue with a specific amount of invested assets. It is calculated by dividing company’s sales value with company’s average invested assets.
Investment Turnover of ZNet Co.

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Chapter 9 Solutions
Managerial Accounting
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