PLEASE ANSWER Question to best of ability Gilde Industries is a division of a ma

Question

PLEASE ANSWER Question to best of ability

Gilde Industries is a division of a major corporation. Last year the division had total sales of $27,615,900, net operating income of $3,866,226, and average operating assets of $7,081,000. The company's minimum required rate of return is 13%. What is the division's margin? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) What is the division's turnover? (Round your answer to 2 decimal places.) What is the division's return on investment (ROI)? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

a. Margin = Net operating income / Sales = $3,866,226 / $27,615,900 = 0.14 = 14%

b. Turnover = Sales/Average operating assets = $27,615,900/$7,081,000 = 3.90

c. ROI = Margin * Turnover = 3.90 * 14% = 0.55 = 55%

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