DuPont model
Not what you're looking for?
The Eastern Division of XYZ, Inc., has operating income of $32,000 on sales revenue of $320,000. Divisional operating assets are $160,000 and management of XYZ has determined that a minimum return of 10% should be expected from all investments.
(a.) Using the DuPont model, calculate the Eastern Division's margin, turnover, and ROI.
(b.) Calculate the Eastern Division's residual income.
Purchase this Solution
Solution Summary
This solution explains how to calculate margin, turnover, and ROI using DuPont model
Solution Preview
(a) Margin = Operating Income/Sales = 32,000/320,000 = 10%
Turnover = ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.