question archive Celski Company, has income from operations of $60,000, invested assets of $250,000, and sales of $800,000
Celski Company, has income from operations of $60,000, invested assets of $250,000, and sales of $800,000
Subject:AccountingPrice:2.89 Bought3
Celski Company, has income from operations of $60,000, invested assets of $250,000, and sales of $800,000. Use the DuPont formula to Compute the rate of return on investment and show
(a) The profit margin,
(b) The investment turnover, and
(c) The rate of return on investment.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
(a) Profit Margin = $60,000/$800,000
Profit Margin = 7.5%
(b) Investment Turnover = $800,000/$250,000
Investment Turnover = 3.2
(c) Rate of Return on Investment = Total profit percentage × Investment Turnover
Rate of Return on Investment = 7.5% × 3.2
Rate of Return on Investment = 24%
