Division X's profit margin is 17%, and its investment turnover is 4.2.What is the rate of return on investment for Division X?
A) 4.0%
B) 71.4%
C) 26.8%
D) 38.2%

Name: Division X's profit margin is 17%, and its investment turnover is 4.2.What is the rate of return on investment for Division X? A) 4.0% B) 71.4% C) 26.8% D) 38.2%
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Question

Quizplus · Accepted Answer

The rate of return on investment (ROI) is calculated by multiplying the profit margin by the investment turnover. In this case, the ROI is 17% x 4.2 = 71.4%.

Division X's Profit Margin Is 17%, and Its Investment Turnover