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Megamart provides the following information on its two investment centers.
Investment Center Sales Income Average Assets
Electronics $ 45,000,000 $ 3,420,000 $ 18,000,000
Sporting goods 25,200,000 2,520,000 14,000,000
Compute profit margin and investment turnover for each center. Which center generates more income per dollar of sales? Which department is most efficient at generating sales from average invested assets?
Profit Margin
Investment Turnover
Compute profit margin for each center. Which center generates more income per dollar of sales?