Gaal Industries is a division of a major corporation Last ye

Gaal Industries is a division of a major corporation. Last year the division had total sales of $27,311,900, net operating income of $2,840,438, and average operating assets of $7,094,000. The company\'s minimum required rate of return is 15%. Required a. What is the division\'s margin? (Round your answer to 2 decimal places.) Division\'s Margin b. What is the division\'s turnover? (Round your answer to 2 decimal places.) Division Turnover c.What is the division\'s return on investment (ROI)? (Round your answer to 2 decimal places.) Return on Investment (ROI)

Solution

a. Margin = Net Operating Income / Sales *100

= $ 2840438 / 27311900 *100

= 10.40%

Hence, the correct answer is 10.40%

b. Turnover= Sales / Average Operating Assets

= $ 27311900 / $ 7094000

= 3.85

Hence, the correct answer is  3.85

c. ROI = Net Operating Income / Average Operating Assets *100

= $ 2840438/ $ 7094000 *100

= 40.04%

Hence, the correct answer is 40.04%