Calculate the return on investment
Problem
Dantone, Inc. provides the following information: Profit margin ratio 7% Asset turnover ratio 2 times Net sales $500,000 Target rate of return 8% Calculate the return on investment.
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Explain how to calculate each ratio and what they are meant to measure. Indicate what number (higher/lower) do companies hope to maintain?
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Profit margin ratio 7% Asset turnover ratio 2 times Net sales $500,000 Target rate of return 8% Calculate the return on investment.
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