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    Juno, Inc and Mayo, Inc: Return on Investment, return on Sales; Capital Turnover;

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    Use the following to answer questions 27-29.

    The following information regarding Juno, Inc. is available:

    SALES $1,000,000
    COST OF GOODS SOLD 600,000
    OPERATING EXPENSES 300,000
    OPERATING INCOME 100,000
    AVERAGE INVESTED CAPITAL 2,000,000

    27. Refer to the information above. What is the return on investment for Juno, Inc?
    a. 4%.
    b. 5%.
    c. 10%.
    d. 20%.

    28. Refer to the information above. What is the return on sales for Juno, Inc.?
    a. 4%.
    b. 5%.
    c. 10%.
    d. 20%.

    29. Refer to the information above. What is the capital turnover for Juno, Inc.?
    a. 200%.
    b. 5%.
    c. 10%.
    d. 50%.

    Use the following to answer questions 30-31.
    The following information regarding Mayo, Inc. is available:

    SALES $3,200,000
    COST OF GOODS SOLD 1,400,000
    OPERATING EXPENSES 1,000,000
    OPERATING INCOME 800,000
    AVERAGE INVESTED CAPITAL 5,000,000

    30. Refer to the information above. What is the return on investment for Mayo, Inc?
    a. 64%.
    b. 25%.
    c. 16%.
    d. 8%.

    31. Refer to the information above. What is the return on sales for Mayo, Inc.?
    a. 16%.
    b. 25%.
    c. 48%.
    d. 60%.

    32. Delmar Company's ROI is 10% and its return on sales is 30%. What is its capital turnover?
    a. 3%.
    b. 33 1/3%.
    c. 300%.
    d. Some other percentage.

    33. Belair Company has a ROI of 15% and a capital turnover of 20%. What is its return on sales?
    a. 133%.
    b. 75%.
    c. 60%.
    d. Some other percentage.

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    https://brainmass.com/business/accounting/juno-inc-and-mayo-inc-return-on-investment-return-on-sales-capital-turnover-37106

    Solution Preview

    BUSINESS ANALYSIS/ACCOUNTING
    --------------------------------------------------------------------------------
    Use the following to answer questions 27-29.
    The following information regarding Juno, Inc. is available:

    SALES $1,000,000
    COST OF GOODS SOLD 600,000
    OPERATING EXPENSES 300,000
    OPERATING INCOME ...

    Solution Summary

    The response shows the calculations for each questions including the answers.

    $2.19

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