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Determine the profit margin

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Reference no: EM132785676

Question - A division has profit of $40 500, sales of $495 000 and an investment base of $225 000. If the required charge for capital is 18 per cent, determine:

1. the profit margin

2. the asset turnover

3. the return on investment

4. the relationship between the three measures in parts (a) to (c)

5. the residual income.

Reference no: EM132785676

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