Rate of Return on Investment = Profit Margin × Investment Turnover
12% = 5% × (a)
(b) = 8% × 2.00
14% = (c) × 1.40
13.5% = 6% × (d)
(e). = 15% × 1.20
Determine the missing items, identifying each by the appropriate letter.
Answer:
a. 2.40 = 12% ÷ 5%
b. 16% = 8% × 2.00
c. 10% = 14% ÷ 1.40
d. 2.25 = 13.5% ÷ 6%
e. 18% = 15% × 1.20
