Question 1 (1 point) F Company has the following information for its most recent

Question

Question 1 (1 point) F Company has the following information for its most recent year Net income Sales Revenue Average investment capital $5,000,000 $1,000,000 $20,000,000 What was the company's sales margin? ab Express your answer to the nearest whole percent. For example, if your answer is 8.87%, enter it as 9 Save Question 2 (1 point) F Company has the following information for its most recent year Net income Sales Revenue Average investment capital $5,000,000 $1,000,000 $20,000,000 What was the company's capital turnover? ab Express your answer to the nearest tenth. For example, if your answer is 8.87, enter it as 8.9. If your answer is 7, enter it as 7.0 Save

Explanation / Answer

1) Sales margin = 1000000*100/20000000 = 5%

2) Turnover = 20000000/5000000 = 4

3) ROI = 1000000*100/5000000 = 20%

4) ROI = Sales margin*Turnover = 6%*1.5 = 9%

Increase ROI = 6%*2 = 12%

Percentage point increase is 3.0

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