Question

Auagaa474 Corporation had sales of $491,300 and average operating assets of $289,000 for the past period. What is the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2%?

Answer 1

16%

Step-by-step explanation:

Calculation for the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2%

First step is to calculate the Turnover using this formula

Turnover = Sales ÷ Average operating assets

Let plug in the formula

Turnover= $491,300 ÷$289,000

Turnover=1.7

Now let calculate the margin using this formula

ROI = Margin × Turnover

Let plug in the formula

27.2% = Margin × 1.7

Margin = 27.2% ÷ 1.70

Margin=0.16*100

Margin= 16%

Therefore the margin that Auagaa474 needed to earn in order to achieve an ROI of 27.2% will be 16%