What will be the subunit new return on investment

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Problem 1: The current income of the subunit is $42,000. Its current invested capital is $280,000. If the sales margin is increased to 8% and the capital turnover remains constant at 3, what will be the subunit's new return on investment (ROI)?

a) 24%

b) 45%

c) 15%

d) 21%

Reference no: EM132838407

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