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The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of $50,210,000 results in an operating income of $9,967,000. The hurdle rate is 6%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment % b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin % c. Calculate the investment turnover. (Round your answer to 4 decimal places.)

The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of $50,210,000 results in an operating income of $9,967,000. The hurdle rate is 6%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment % b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin % c. Calculate the investment turnover. (Round your answer to 4 decimal places.)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
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The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of $50,210,000 results in an operating income of $9,967,000. The hurdle rate is 6%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment % b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin % c. Calculate the investment turnover. (Round your answer to 4 decimal places.) Investment Turnover d. Calculate the residual income. Residual Income
Transcribed Image Text:The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of $50,210,000 results in an operating income of $9,967,000. The hurdle rate is 6%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment % b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin % c. Calculate the investment turnover. (Round your answer to 4 decimal places.) Investment Turnover d. Calculate the residual income. Residual Income
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The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of $50,210,000 results in an operating income of $9,967,000. The hurdle rate is 6%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment 9.06 % b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin 19.85 % c. Calculate the investment turnover. (Round your answer to 4 decimal places.) Investment Turnover 0.4564 4 decimal places required. d. Calculate the residual income. Residual Income
Transcribed Image Text:The Marine Division of Pacific Corp. has average invested assets of $110,000,000. Sales revenue of $50,210,000 results in an operating income of $9,967,000. The hurdle rate is 6%. a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment 9.06 % b. Calculate the profit margin. (Round your answer to 2 decimal places.) Profit Margin 19.85 % c. Calculate the investment turnover. (Round your answer to 4 decimal places.) Investment Turnover 0.4564 4 decimal places required. d. Calculate the residual income. Residual Income
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