Answer:
Investment Center Sales Income Average
Invested Assets
Electronics 45,000,000 3,420,000 18,000,000
Sporting goods 25,200,000 2,520,000 14,000,000
Profit Margin
Profit Margin= Net Income / Sales
- Electronics = 3,420,000 / 45,000,000 = 7.60%
- Sporting Goods = 2,520,000 / 25,200,000 = 10.00%
From this, sporting goods generate the most income per dollar of sale.
Investment Turnover
Investment Turnover = Sale / Average Assets
- Electronics = 45,000,000 / 18,000,000 = 2.5
- Sporting Goods = 25,200,000 / 14,000,000 = 1.8
From this, Electronics is most efficient in driving sale per dollar of investment.
