Peartree family restaurant is divided into segments based on location. Its Orcha

Question

Peartree family restaurant is divided into segments based on location. Its Orchard Street location in the eastern segment has sales of $740,000, net operating income of $75,000, and average operating assets of $800,000. Required:

A. What is Peartree's margin and turnover? Round margin to the nearest whole percent and turnover to two decimal places.

Margin= ______%

Turnover: ______ times

B. What is the ROI for Peartree? Use any previous rounded calcuations. Round your answer to one decimal place. ______%

Explanation / Answer

A) Margin = Net Income/ Net sales

= ($75000/ 740000)*100

= 10%

Turnover = 740000 / 800000

= 0.93 times

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