Question - Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).
|
Investment Center
|
Sales
|
Net Income
|
Average Invested Assets
|
|
Electronics
|
$4,270,000
|
$660,000
|
$3,050,000
|
|
Sporting goods
|
6,240,000
|
920,000
|
4,800,000
|
Required -
Compute the profit margin for each department.
Compute the investment turnover for each department
Which department generates the most net income per dollars of sales?
Which department is most efficient at generating sales from average invested assets?