Asked by courtney mitchell on May 21, 2024
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Kragle Corporation reported the following financial data for one of its divisions for the year; average invested assets of $470,000; sales of $930,000; and income of $105,000.The investment center profit margin is:
A) 22.3%.
B) 50.5%.
C) 197.9%.
D) 447.6%.
E) 11.3%.
Investment Center
A business unit or segment within a larger corporation, with control over its investments, expenses, and revenues, often judged by its return on investment.
Profit Margin
Profit margin represents the percentage of revenue that remains as profit after all expenses have been deducted, highlighting the financial health and profitability of a business.
Financial Data
Quantitative details about the financial status of a company, including balance sheet, income statement, and cash flow statement information.
- Understand the crucial performance indicators for investment centers, such as profit margin, investment turnover, and return on investment.
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Learning Objectives
- Understand the crucial performance indicators for investment centers, such as profit margin, investment turnover, and return on investment.
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