Bottlebrush Company has income from operations of $66,410, invested assets of $229,000, and sales of $664,100. Use the DuPont formula to calculate the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
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Bottlebrush Company has income from operations of $66,410, invested assets of $229,000, and sales of $664,100.

Use the DuPont formula to calculate the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place.

a.  Profit Margin fill in the blank 1 %
b.  Investment Turnover fill in the blank 2  
c.  Return on Investment fill in the blank 3 %
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