Division Q for Mott Company has a rate of return on investment of 28% and an investment turnover of 1.4. What is the profit margin?
A) 28%
B) 20%
C) 14%
D) 39.2%

Name: Division Q for Mott Company has a rate of return on investment of 28% and an investment turnover of 1.4. What is the profit margin? A) 28% B) 20% C) 14% D) 39.2%
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Question

Quizplus · Accepted Answer

The profit margin can be calculated using the formula: Profit Margin = Rate of Return on Investment / Investment Turnover. Therefore, Profit Margin = 28% / 1.4 = 20%.

Division Q for Mott Company Has a Rate of Return