Question

Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products...

Profit Margin, Investment Turnover, and Return on Investment

The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations):

Sales $798,000
Cost of goods sold (359,100)
Gross profit $438,900
Administrative expenses (239,400)
Operating income $199,500

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 $1,330,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place.

Profit margin %
Investment turnover
Return on investment %

b. If expenses could be reduced by $39,900 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment turnover to one decimal place.

Profit margin %
Investment turnover
Return on investment %
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
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 $1,144,000 Cost of goods sold 514,800 Gross profit $629,200 Administrative expenses 400,400 Income from operations $228,800 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...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
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 $1,848,000 Cost of goods sold 831,600 Gross profit $1,016,400 Administrative expenses 646,800 Income from operations $369,600 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...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
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 $944,000 Cost of goods sold 424,800 Gross profit $519,200 Administrative expenses 188,800 Income from operations $330,400 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...
Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products...
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 $1,020,000 Cost of goods sold 459,000 Gross profit $561,000 Administrative expenses 204,000 Income from operations $357,000 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...
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the...
Profit Margin, Investment Turnover, and Rate of Return on Investment The condensed income statement for the International Division of King Industries Inc. is as follows (assuming no service department charges): Sales $884,000 Cost of goods sold 397,800 Gross profit $486,200 Administrative expenses 176,800 Income from operations $309,400 The manager of the International Division is considering ways to increase the rate of return on investment. a. Using the DuPont formula for rate of return on investment, determine the profit margin, investment...
The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows...
The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $942,000 Cost of goods sold 423,900 Gross profit $518,100 Administrative expenses 188,400 Income from operations $329,700 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...
The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows...
The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,140,000 Cost of goods sold 513,000 Gross profit $627,000 Administrative expenses 399,000 Income from operations $228,000 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...
Divisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company...
Divisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows: Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $1,360,000 $1,400,000 $1,380,000 Operating expenses 730,000 662,000 1,044,000 Invested assets 5,000,000 4,100,000 2,800,000 The management of E.F. Lynch Company is evaluating each division as a...
Divisional income statements and return on investment analysis The Crunchy Granola Company is a diversified food...
Divisional income statements and return on investment analysis The Crunchy Granola Company is a diversified food company that specializes in all natural foods. The company has three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y7, are as follows: Cereal Division                   Snack Cake Division         Retail Bakeries Division Sales                                      $28,000,000                        $8,300,000                           $10,050,000 Cost of goods sold            16,970,000                           5,875,000                             7,095,000 Operating expenses       7,630,000                             2,245,000                             2,572,500 Invested assets                 10,300,000                          ...
Divisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company...
Divisional Income Statements and Return on Investment Analysis E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 20Y8, are as follows: Mutual Fund Division Electronic Brokerage Division Investment Banking Division Fee revenue $1,670,000 $1,710,000 $1,670,000 Operating expenses 816,000 630,000 1,180,400 Invested assets 6,100,000 5,000,000 3,400,000 The management of E.F. Lynch Company is evaluating each division as a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT