eBook Calculator Return on Investment, Margin, Turnover Data follow for the Cons

Question

eBook Calculator Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: Year 1 Year 2 Sales Operating income Average operating assets Required: 1. Compute the margin (as a percent) and turnover ratios for each year. Round your answers to two decimal places. $9,250,000 $7,920,000 306,504 18,137,255 17,600,000 519,850 Year 1 Year 2 Margin Turnover 2. Compute the ROI for the Construction Division for each year Note: Enter percentage to two decimal places ROI year 1 ROI year 2 Previous

Explanation / Answer

Answer:

1

Margin and turnover ratio for year-1 and year-2

Year-1

Year-2

Margin

5.62%

3.87%

Turnover

0.51

0.45

Working notes for the answer

Magin

Year-1

Year-2

Margin
= Operating income/ Sales

5.62%

3.87%

Operating income

519850

306504

Sales

9,250,000

7,920,000

Year-1

Year-2

Turnover
= Sales/Average operating assets.

0.51

0.45

Sales

9250000

7920000

Avearge Operating Assetss

18137255

17600000

_______________________________________________

2

ROI of the construction division

Year-1

Year-2

ROI
=Margin x turnover

2.87%

1.74%

Margin

5.62%

3.87%

Turnover

0.51

0.45

Year-1

Year-2

Margin

5.62%

3.87%

Turnover

0.51

0.45

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.