Answer:
Profit Margin = 33%
Investment Turnover = 1.25 times
Explanation:
Shipping division's profit margin = [tex]\frac{Net\:Income}{Net\: Sales} \times 100[/tex]
Here, we have Net income = $844,800
Sales = $2,560,000
Therefore profit margin = [tex]\frac{844,800}{2,560,000} \times 100 = 33[/tex]
Profit margin = 33%
Investment turnover = [tex]\frac{Net\: Sales}{Average\: Invested\: Assets}[/tex]
Net Sales = $2,560,000
Average invested assets = $2,048,000
Investment turnover = [tex]\frac{2,560,000}{2,048,000} = 1.25[/tex]
Therefore,
Profit Margin = 33%
Investment Turnover = 1.25 times
