If a company reports profit margin of 31.6% and investment turnover of 1.30 for one of its investment centers, the return on investment must be:
A) 32.9%.
B) 24.3%.
C) 30.3%.
D) 41.1%.
E) 4.11%.

Name: If a company reports profit margin of 31.6% and investment turnover of 1.30 for one of its investment centers, the return on investment must be: A) 32.9%. B) 24.3%. C) 30.3%. D) 41.1%. E) 4.11%.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

Return on investment (ROI) = profit margin x investment turnover
= 0.316 x 1.30
= 0.411 or 41.1%

If a Company Reports Profit Margin of 31