The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows...

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The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales Cost of goods sold Gross profit $894,000 402,300 $491,700 Administrative expenses Income from operations 178,800 $312,900 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,490,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin Investment turnover % Rate of return on investment % b. If expenses could be reduced by $44,700 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment turnover to one decimal place. Profit margin Investment turnover % Rate of return on investment % The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales Cost of goods sold Gross profit $894,000 402,300 $491,700 Administrative expenses Income from operations 178,800 $312,900 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $1,490,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin Investment turnover % Rate of return on investment % b. If expenses could be reduced by $44,700 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the Consumer Products Division? Round the investment turnover to one decimal place. Profit margin Investment turnover % Rate of return on investment %

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Answer Using the DuPont Formula The DuPont formula helps us understand the factors contributing to a ... View the full answer