Question

PLEASE HELP AND SHOW WORK, please highlight answers, THANK YOU!!

6.
Bottlebrush Company has operating income of $99,960, invested assets of $196,000, and sales of $588,000. Use the DuPont formula to compute the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) th return on investment. Round answers to one decimal place. a. Profit margin % b. Investment turnover C. Return on investment %

7.

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Answer 1

Answer:

6)

(a)

Profit Margin                = Operating Income / Sales                = $ 99,960 / $ 588,000                =    17%

Profit Margin   =    17%

(b)

Investment turnover                 = Sales / Invested Assets                 =   $ 588,000 / $ 196,000                 =   3 times

Investment turnover   =   3 times

(c )

Return on investment         = Operating Income / Invested Assets                = $ 99,960 / $ 196,000                =    51%

Return on investment   =    51%

7)
Pasadena Candle Inc. Production Budget For the Month Ending January 31
Expected units to be sold	46,000
Desired ending inventory, January 31	5,000
Total units available	51,000
Estimated beginning inventory, January 1	-1,800
Total units to be produced in January	49,200