Final answer:
To calculate the profit margin, divide the return on investment, which is 22%, by the investment turnover of 2.03. The profit margin, rounded to two decimal places, is approximately 10.84%.
Step-by-step explanation:
The question involves calculating the profit margin for the central division of a chemical company using the given return on investment (ROI) of 22% and an investment turnover of 2.03. To find the profit margin, you need to use the formula:
Profit Margin = ROI / Investment Turnover
By plugging in the provided numbers, the calculation is as follows:
Profit Margin = 0.22 (or 22%) / 2.03
Profit Margin ≈ 0.10837
When rounded to two decimal places, the profit margin is approximately 10.84%.
The profit margin can be calculated using the formula:
Profit Margin = Return on Investment / Investment Turnover
Given that the Return on Investment is 22% and the Investment Turnover is 2.03, we can substitute these values into the formula:
Profit Margin = 22% / 2.03 = 10.84% (rounded to two decimal places).
Therefore, the profit margin for the central division of the chemical company is 10.84%.