The Portland Division's operating data for the past two years is as follows: Year 1 Year...

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The Portland Division's operating data for the past two years is as follows: Year 1 Year...

The Portland Division's operating data for the past two years is as follows:

Year 1 Year 2

Return on investment 8 % 15 %

Net operating income $ ? $ 750,000

Turnover ? 2

Margin ? ?

Sales $ 1,990,000 ?

The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The turnover for Year 1 was:

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Answer 1

Answer #1

ROI=Margin % x Turnover Year 2 ROI = Year 2 Margin % x Year 2 Turnover or 15% = Year 2 Margin % x 2 or Year 2 margin % = 15%

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Answer 2

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