Gaal Industries is a division of a major corporation. Last year the division had
ID: 2569332 • Letter: G
Question
Gaal Industries is a division of a major corporation. Last year the division had total sales of $33,667,200, net operating income of $4,679,741, and average operating assets of $7,014,000. The company's minimum required rate of return is 22%. Required a. What is the division's margin? (Round your answer to 2 decimal places.) argin b. What is the division's turnover? (Round your answer to 2 decimal places.) urnover c. What is the division's return on investment (ROI)? (Round your answer to 2 decimal places.) Return on investmentExplanation / Answer
Answer to Part a.
Margin = Net Operating Income / Sales * 100
Margin = 4,679,741 / 33,667,200 * 100
Margin = 13.90%
Answer to Part b.
Turnover = Sales / Average Operating Assets
Turnover = 33,667,200 / 7,014,000
Turnover = 4.80
Answer to Part c.
Return on Investment = Net Operating Income / Average Operating Assets * 100
Return on Investment = 4,679,741 / 7,014,000 * 100
Return on Investment = 66.72%
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.