The Portland Division's operating data for the past two years is as follows: The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The turnover for Year 1 was:
A)10.00
B)2.00
C)1.50
D)3.20

Question

The Portland Division's operating data for the past two years is as follows:  The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The turnover for Year 1 was:
A)10.00 
B)2.00 
C)1.50 
D)3.20

Quizplus · Accepted Answer

Year 2 ROI = Year 2 Margin × Year 2 Turnover
24% = Year 2 Margin × 2
Year 2 Margin = 24% ÷ 2 = 12%
Year 2 Margin = 150% × Year 1 Margin
12% = 150% × Year 1 Margin
Year 1 Margin = 12% ÷ 150% = 8%
Year 1 ROI = Year 1 Margin × Year 1 Turnover
12% = 8% × Year 1 Turnover
Year 1 Turnover = 12% ÷ 8% = 1.5

The Portland Division's Operating Data for the Past Two Years