Business, 07.04.2020 23:04 norahramahi123

Profit Margin, investment turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $82,500,000 Cost of goods sold 53,625,000 Gross profit $28,875,000 Administrative expenses 15,675,000 Income from operations $13,200,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,280,000 of assets have been invested in the Consumer Products Division. If required, round the investment turnover to one decimal place. Profit margin 16 % Investment turnover 1.5 Return on investment 24 % b. If expenses could be reduced by $1,650,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? If required, round the investment turnover to one decimal place. Profit margin % Investment turnover Return on investment %

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 18:20

Which of the following is intended to demonstrate to an employer the importance of cooperating with workers? a. a collective agreement. b. a stock offer. c. a boost in production. d. a work slowdown. 2b2t

Answers: 2

Answer

Business, 22.06.2019 02:00

Southeastern bell stocks a certain switch connector at its central warehouse for supplying field service offices. the yearly demand for these connectors is 15,000 units. southeastern estimates its annual holding cost for this item to be $25 per unit. the cost to place and process an order from the supplier is $75. the company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.a) find the economic order quantity.b) find the annual holding costs.c) find the annual ordering costs.d) what is the reorder point?

Answers: 2

Answer

Business, 22.06.2019 03:20

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Answers: 1

Answer

Business, 22.06.2019 07:10

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Answers: 2

Answer

You know the right answer?

Profit Margin, investment turnover, and return on investment The condensed income statement for the...

Questions