RETURN ON INVESTMENT, MARGIN, TURNOVER
Data follow for the Construction Division of D. Jack Inc.:
| |
Year 1 |
Year 2
|
|
Sales
|
$12,500,000
|
$10,000,000
|
|
Operating income
|
2,500,000
|
1,800,000
|
|
Average operating assets
|
5,000,000
|
5,000,000
|
Required:
1. Compute the margin and turnover ratios for each year.
2. Compute the ROI for the Construction Division for each year.