The Walnut Division of Benton Corp.has average invested assets of $22,500,000.Sales revenue of $27,000,000 results in an operating income of $2,379,500.The hurdle rate is 8%.
a.Calculate the return on investment.
b.Calculate the profit margin.
c.Calculate the investment turnover.
d.Calculate the residual income.

Question

Quizplus · Accepted Answer

The Answer of The Walnut Division of Benton Corp.has average invested assets of $22,500,000.Sales revenue of $27,000,000 results in an operating income of $2,379,500.The hurdle rate is 8%.
a.Calculate the return on investment.
b.Calculate the profit margin.
c.Calculate the investment turnover.
d.Calculate the residual income.