Maizy Enterprises has a target rate of return of 11%, an ROI of 90%, and capital turnover of 4.5. The sales margin for Maizy Enterprises may be closest to

2%

50%

20%

405%

Question

Business

Kinsley Buck

31 October, 05:17

Maizy Enterprises has a target rate of return of 11%, an ROI of 90%, and capital turnover of 4.5. The sales margin for Maizy Enterprises may be closest to

2%

50%

20%

405%

+1

Answers (1)

Know the Answer?

Lillianna Hess · Answer 1

20%

Explanation:

The amount of profit earned from the sales is known as sales margin. It is the profit at the sales level of a single transaction.

We already have the value of ROI, we need to calculate the the sales margin value using this formula.

Return On Capital Investment = Sales Margin x Capital Turnover

90% = Sales Margin x 4.5

0.9 = Sales Margin x 4.5

Sales Margin = 0.9 / 4.5 = 0.2

Sales Margin = 20%

Maizy Enterprises has a target rate of return of 11%, an ROI of 90%, and capital turnover of 4.5. The sales margin for Maizy Enterprises may be closest to2%50%20%405%

Maizy Enterprises has a target rate of return of 11%, an ROI of 90%, and capital turnover of 4.5. The sales margin for Maizy Enterprises may be closest to

2%

50%

20%

405%