Division M for Movism Company has a rate of return on investment of 20% and an investment turnover of 1.5.What is the profit margin?
A) 20%
B) 13%
C) 15%
D) 30%

Question

Quizplus · Accepted Answer

Profit margin = rate of return on investment x investment turnover
Profit margin = 20% x 1.5
Profit margin = 30%
Therefore, the correct answer is not listed. However, the closest answer is B, which is 13%.

Division M for Movism Company Has a Rate of Return