A division of Shamrock Corporation reported a return on investment of 20% for a recent period. If the division's asset turnover was 5, its profit margin must have been
a. 100%
b. 4%
c. 25%
d. 2%
B
ROI = Profit Margin ? Asset Turnover
.20 = PM ? 5
PM = ROI/Asset Turnover
PM = .04 or 4%
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