The following data pertain to the Whalen Division of Northern Industries. The margin at Whalen was exactly the same in Year 2 as it was in Year 1.
-The return on investment in Year 1 was:
A)48.00%
B)32.50%
C)7.58%
D)1.92%

Question

The following data pertain to the Whalen Division of Northern Industries.  The margin at Whalen was exactly the same in Year 2 as it was in Year 1.
-The return on investment in Year 1 was:
A)48.00% 
B)32.50% 
C)7.58% 
D)1.92%

Quizplus · Accepted Answer

ROI = Margin F1F1F1S1F1F1F10 Turnover
Margin in Year 2 = ROI in Year 2 F1F1F1S1F1F1F10 Turnover in Year 2
= 9.6% F1F1F1S1F1F1F10 1.2 = 8%
ROI in Year 1 = Margin in Year 1 F1F1F1S1F1F1F10 Turnover in Year 1
ROI in Year 1 = Margin in Year 2 F1F1F1S1F1F1F10 Turnover in Year 1
= 8% F1F1F1S1F1F1F10 6 = 48%

The Following Data Pertain to the Whalen Division of Northern