Question

The following information applies to the questions displayed below A food manufacturer reports the following for two of is divisions for a recent year Cheese Division Sons Invested , beginning Investedats, ending Sales Operating income Beverage Division S2580 2502 2.690 4.409 Award: 3.00 points 1. Compute return on investment 2. Compute profit margin 3. Compute investment turnover for the year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment. (Enter your answers in milions.) Return on investment Choose Denominator Choose Numerator. - - Return on investment Return on investment Investment Center Beverage < Required 1 Required 2 >

Answer 1

1.

Return on investment

Investment center	Operating income	/	Average invested assets	=	Return on investment
Beverage	358	/	2,641	=	13.56%
Cheese	643	/	4,441	=	14.48%

2.

Profit margin

Investment center	Operating income	/	Sales	=	Profit margin
Beverage	358	/	2,690	=	13.31%
Cheese	643	/	3,934	=	16.34%

3.

Investment turnover

Investment center	Sales	/	Average invested assets	=	Investment turnover
Beverage	2,690	/	2,641	=	1.02
Cheese	3,934	/	4,441	=	0.89

Exact answer may slightly differ due to rounding off.

Please ask if you have any query related to the question. Thank you