Asked by Bruno Freitas on Jul 22, 2024
Verified
The profit margin for the Central Division is 20%, and the investment turnover is 2.8. The return on investment (ROI) for the Central Division is
A) 20%
B) 7.1%
C) 14%
D) 56%
Investment Turnover
A ratio measuring how efficiently a company generates sales from its inventory investments.
Profit Margin
A financial metric expressing the percentage of revenue that remains as profit after all operating expenses are deducted.
Return on Investment
A financial metric used to measure the efficiency of an investment, calculated by dividing the profit gained from the investment by its cost.
- Evaluate the performance of different investment centers by analyzing ROI alongside other financial metrics.
Verified Answer
Learning Objectives
- Evaluate the performance of different investment centers by analyzing ROI alongside other financial metrics.
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