Dinning Corporation has two divisions In the most recent year the Sintering Division reported sales of $150,000 and an asset turnover ratio of 3 0 The divisions controller reported to headquarters that the rate of return on average invested assets was 18 0 percent Required Calculate the percentage ...

ROI margin x asset turnover r ...

Dinning Corporation has two divisions. In the most recent year the Sintering Division reported sales of $150,000

Question:

Dinning has two divisions. In the most recent year the Sintering Division reported sales of $150,000 and an ratio of 3.0. The division’s controller reported to headquarters that the rate of return on average invested assets was 18.0 percent.

Required
Calculate the percentage of net income to sales (i.e., margin).

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...