The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $1,098,900. The c
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Answer:
1. Margin = 8%
2. Turnover = $7,500,000
3. Return on Investment = 12%
Explanation:
Sales for the year = $7,500,000
Net Operating Income = $600,000
Average Operating Assets = $5,000,000
1. Therefore, Margin = ( Net operating Income/Total Sales ) 100 = 8%
2. Turnover = Sales for the period = $7,500,000
3. Return on Investment = Net Income/Average Operating assets
= $600,000/$5,000,000 = 12%