Problem:
Using the formula Rate of return on investment) = Profit margin x Investment turnover
Calculate the return of investment for the following division results:
Sales $8,928,000
Income from operation $650,000
Profit margin $ 4,385,000
a) Margin __________/_______________=______________
Investment turnover _________/____________=_______________
Return on investement _________x___________=____________
b) If the company expects a ROI of 13? Has the company met the targeted ROI? Yes or no and why?