The Southern Division of Knucklehead Company has a rate of return on investment of 15% and an investment turnover of 1.2.What is the profit margin?
A) 1.5%
B) 12.5%
C) 0.67%
D) 6.67%

Question

Quizplus · Accepted Answer

The profit margin can be calculated using the formula: Profit Margin = Rate of Return on Investment / Investment Turnover. Plugging in the given values: Profit Margin = 15% / 1.2 = 12.5%.

The Southern Division of Knucklehead Company Has a Rate of Return