During the year the Hopewell and Hamilton divisions of Granger Company reported the following: 1. What was

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During the year the Hopewell and Hamilton divisions of Granger Company reported the following:

Hamilton Division 24% 5% Hopewell Division 15% 3% ROI. Profit margin ratio Revenue Total assets S75,000 S15,000 S102,000

1. What was each division's asset turnover ratio?
2. What profit margin ratio would each division need in order to generate an ROI of25%?

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.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Posted: Dec 28, 2011 03:38 AM

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During the year the Hopewell and Hamilton divisions of Granger Company reported the following: 1. What was

Question:

Hamilton Division 24% 5% Hopewell Division 15% 3% ROI. Profit margin ratio Revenue Total assets S75,000 S15,000 S102,000 S17,000

Step by Step Answer:

1 Hopewell Division 2 ROI Profit margin x Asset turnover In order to generate a return on total as...View the full answer

Accounting concepts and applications

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