Question

Provide the missing data in the following table for a distributor of martial arts products: (Round "Turnover" and "ROI" answers to 1 decimal place.) Division Alpha Charlie $ $ Bravo 347,500 48,650 $ 77,480 Sales Net operating income Average operating assets Margin $ 488.000 Turnover Return on investment (ROI) 35.0 % 26.0 %

Answer 1

Solution)

Statement showing required computations

Particulars	Alpha Division ($)	Bravo Division ($)	Charlie Division ($)
Sales	2,440,000	347,500	596,000
Net operating income	170,800	48,650	77,480
Average operating assets	488,000	139,000	298,000
Margin	7%	14%	13%
Turnover	5.0	2.5	2
Return on investment (ROI)	35.0%	35.0%	26.0%

Note:

Turnover = Sales/ Average operating assets

Margin(%) = (Net operating income/ Sales) x 100

Return on investment (ROI) in % = (Net operating income/ Average operating assets) x 100