Profit margin, investment turnover, and return on investment
the condensed income statement for the consumer products division of milner industries inc. is as follows (assuming no service department charges):
sales: $82,500,000
cost of goods sold: 53,625,000
gross profit: $28,875,000
administrative expenses: 15,675,000
income from operations: $13,200,000
the manager of the consumer products division is considering ways to increase the rate of return on investment.
a. using the dupont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment of the consumer products division, assuming that $5,000,000 of assets have been invested in the consumer products division. if required, round the investment turnover to one decimal place.
b. if expenses could be reduced by $350,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and rate of return on investment for the consumer products division? if required, round the investment turnover to one decimal places.

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.