Ragtime Division, which is part of Conquer Enterprises, recently reported a sales margin of 30% and an ROI of 21%.
Required:
A. Briefly define sales margin, capital turnover, and return on investment.
B. Assume that Ragtime has residual income of $220,000 and that Conquer uses an imputed interest rate of 10%. Compute Ragtime's capital turnover and invested capital.
C. In answering this question, ignore the assumptions stated in requirement "B," and your answer. Instead, assume that Ragtime's invested capital amounted to $2,500,000. On the basis of this information, calculate income and sales revenue.

Question

Ragtime Division, which is part of Conquer Enterprises, recently reported a sales margin of 30% and an ROI of 21%.
Required: 
A. Briefly define sales margin, capital turnover, and return on investment.
B. Assume that Ragtime has residual income of $220,000 and that Conquer uses an imputed interest rate of 10%. Compute Ragtime's capital turnover and invested capital.
C. In answering this question, ignore the assumptions stated in requirement "B," and your answer. Instead, assume that Ragtime's invested capital amounted to $2,500,000. On the basis of this information, calculate income and sales revenue.

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The Answer of Ragtime Division, which is part of Conquer Enterprises, recently reported a sales margin of 30% and an ROI of 21%.
Required: 
A. Briefly define sales margin, capital turnover, and return on investment.
B. Assume that Ragtime has residual income of $220,000 and that Conquer uses an imputed interest rate of 10%. Compute Ragtime's capital turnover and invested capital.
C. In answering this question, ignore the assumptions stated in requirement "B," and your answer. Instead, assume that Ragtime's invested capital amounted to $2,500,000. On the basis of this information, calculate income and sales revenue.

Ragtime Division, Which Is Part of Conquer Enterprises, Recently Reported