Gabbe Industries is a division of a major corporation. Last year the division ha

Question

Gabbe Industries is a division of a major corporation. Last year the division had total sales of $27,311,900, net operating income of $2,840,438, and average operating assets of $7,094,000. The company's minimum required rate of return is 15%. Required a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) C. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.) a. Margin b. Turnover C. Return on investment

Explanation / Answer

Margin(Net operating income/Sales)(2840438/27311900) 10.40% Turnover(Sales/Average operating assets)(27311900/7094000) 3.85 ROI(Net operating income/Average operating assets)(2840438/7094000) 40.04%

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