Pigeon Forges' Stakeholders Require a 10% Rate of Return

question 212

Multiple Choice

Pigeon Forges' stakeholders require a 10% rate of return.The company currently has an ROI of 37% and a capital turnover of 2.0.What is Pigeon's sales margin?

• A)74.3%
• B)5.0%
• C)18.5%
• D)20.0%

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Definitions:

Sales Commissions

Payments made to salespersons or agents based on the sales they generate.

Product Costs

All costs incurred to acquire or produce the finished products that are sold to customers.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Balance Sheet

A descriptor of a company’s financial health, enumerating assets, liabilities, and the stake of shareholders at an exact moment.