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Required information [The following information applies to the questions displayed below.] Megamart, a retailer of consumer gProfit Margin Investment Turnover Compute investment turnover for each department. Which department is most efficient at gene

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Answer #1
Profit Margin
Choose numerator / Choose denominator = Profit Margin
Investment center Net Income / Sales = Profit Margin
Electronics 2988000 / 39840000 = 7.50%
Sporting goods 2142000 / 25200000 = 8.50%
= Sporting goods
Investment Turnover
Choose numerator / Choose denominator = Profit Margin
Investment center Sales / Average Invested Assets = Profit Margin
Electronics 39840000 / 16600000 = 240%
Sporting goods 25200000 / 12600000 = 200%
= Electronics
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