The profit margin for Division C is 6%, and the investment turnover is 1.2. The return on investment for Division B is
A)20%
B)6.7%
C)7.3%
D)7.2%

Question

Quizplus · Accepted Answer

The return on investment (ROI) is calculated as the product of the profit margin and the investment turnover. For Division C, with a profit margin of 6% and an investment turnover of 1.2, the ROI is 0.06 * 1.2 = 0.072 or 7.2%.

The Profit Margin for Division C Is 6%, and the Investment