Explanation:
The computation is shown below:
For return on investment
Return on investment = Income from operations ÷ invested assets
= $13,200,000 ÷ $55,000,000
= 0.24 or 24%
For Investment turnover
Investment turnover = Sales ÷ Invested assets
= $82,500,000 ÷ $55,000,000
= 1.5
For Profit margin
Profit Margin = Income from operations ÷ Sales
= $13,200,000 ÷ $82,500,000
= 0.16 or 16%
The return on investment
= Profit margin × investment turnover
= 16% × 1.5
= 24%
