Answer:
The Dakota Division's sales margin, capital turnover, and return on investment for the year is 7.40% , 4.60 times and 34% respectively
Explanation:
The computations are shown below:
1. For sales margin
:
Margin = Income ÷ Sales × 100
= $4,250,000 ÷ $57,500,000 × 100
= 7.40%
2. For turnover:
Turnover = Sales ÷ Average invested capital
= $57,500,000 ÷ $12,500,000
= 4.60 times
3. For Return on investment:
Return on investment = Income ÷ Average invested capital × 100
= $4,250,000 ÷ $12,500,000 × 100
= 34%
