Exercise 22-23 Profit margin and investment turnover LO A2 L'Oréal reports the following for a recent year for the major divisions in its cosmetics branch. Total Assets Total Assets € millions Professional products Consumer products Luxury products Sales Income End of Year € 2,717 € 552 € 2,624 Beginning of Year € 2,516 9,530 4,507 1,765 5,994 3,651 5,496 4,059 791 Active cosmetics 1,386 278 830 817 Total €18,140 € 3,386 €13,099 €12,888 1. Compute profit margin for each division. Which L'Oréal division has the highest profit margin? 2. Compute investment turnover for each division. Which L'Oréal division has the best investment turnover? Completo thic quection by ontoxing voUN ancua Ns in the tahc holou

Exercise 22-23 Profit margin and investment turnover LO A2 L'Oréal reports the following for a recent year for the major divisions in its cosmetics branch. Total Assets Total Assets € millions Professional products Consumer products Luxury products Sales Income End of Year € 2,717 € 552 € 2,624 Beginning of Year € 2,516 9,530 4,507 1,765 5,994 3,651 5,496 4,059 791 Active cosmetics 1,386 278 830 817 Total €18,140 € 3,386 €13,099 €12,888 1. Compute profit margin for each division. Which L'Oréal division has the highest profit margin? 2. Compute investment turnover for each division. Which L'Oréal division has the best investment turnover? Completo thic quection by ontoxing voUN ancua Ns in the tahc holou

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter24: Decentralized Operations

Section: Chapter Questions

Problem 24.3CP

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Exercise 22-23 Profit margin and investment turnover LO A2

L’Oréal reports the following for a recent year for the major divisions in its cosmetics branch.

€ millions	Sales		Income		Total Assets End of Year	Total Assets Beginning of Year
Professional products	€	2,717		€	552		€	2,624	€	2,516
Consumer products		9,530			1,765			5,994		5,496
Luxury products		4,507			791			3,651		4,059
Active cosmetics		1,386			278			830		817
Total	€	18,140		€	3,386		€	13,099	€	12,888

1. Compute profit margin for each division. Which L’Oréal division has the highest profit margin?
2. Compute investment turnover for each division. Which L’Oréal division has the best investment turnover?

Exercise 22-23 Profit margin and investment turnover LO A2
L'Oréal reports the following for a recent year for the major divisions in its cosmetics branch.
Total Assets
Total Assets
€ millions
Professional products
Consumer products
Luxury products
Sales
End of Year
Beginning of Year
€ 2,516
5,496
Income
€ 2,717 € 552
€ 2,624
9,530
4,507
1,765
5,994
3,651
791
4,059
Active cosmetics
1,386
278
830
817
Total
€18,140 € 3,386
€13,099
€12,888
1. Compute profit margin for each division. Which L'Oréal division has the highest profit margin?
2. Compute investment turnover for each division. Which L'Oréal division has the best investment
turnover?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute profit margin for each division. Which L'Oréal division has the highest profit margin? (Enter your ar
millions.)
Choose Numerator:
Choose Denominator:
Profit Margin
Division
Profit Margin
Professional products
Consumer products
Luxury products
Active cosmetics
Which L'Oreal division has the highest profit margin
Required 1
Required 2 >

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