Ask Question
30 July, 08:05

Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $25,854, invested assets of $139,000, and sales of $430,900. Use the DuPont formula to compute the return on investment. If required, round your answers to two decimal places. a. Profit margin % b. Investment turnover c. Return on investment

+4
Answers (1)
  1. 30 July, 11:31
    0
    a. 6.00%

    b. 3.10 times

    c. 18.60%

    Explanation:

    The computations are given below

    As we know that

    a. Profit margin is

    = Income from operation : Sales * 100

    = $25,854 : $430,900

    = 6.00%

    b. Investment turnover is

    = Sales : Invested assets

    = $430,900 : $139,000

    = 3.10 times

    And,

    c. Return on investment is

    = Profit margin * investment turnover

    = 6 * 3.1 times

    = 18.60%

    Therefore, we use the above formulas
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $25,854, invested assets of $139,000, and sales of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers