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Determine the rate of return on investment

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Question - Lisa Corporation's balance sheet indicates that the company has 5,000,000 investment in operating assets. In 2021, Lisa earned 1,100,000 of profit on 11,000,000 of sales.

a. Determine the profit margin rate for 2021.

b. Determine the asset turnover for 2021.

c. Determine the rate of return on investment for 2021.

d. Determine the rate of return on investment for 2021 assuming sales increase to P6,000,000 and profit increases to P1,300,000.

e. Determine the rate of return on investment for 2021 assuming sales remain constant, costs and expenses decrease, while profit increases by P400,000.

f. Determine the rate of return on investment for 2021 assuming the amount of investment is decreased by P400,000 without affecting the profit.

Reference no: EM132940217

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