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

Question

Quizplus · Accepted Answer

The rate of return on investment (ROI) is calculated by multiplying the profit margin by 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