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The Following Data Pertain to Corkscrew Corporation Required:
Calculate Corkscrew Corporation's Sales Margin, Capital Turnover, and Return

question 93

Essay

The following data pertain to Corkscrew Corporation:  Income $8,000,000 Sales revenue 40,000,000 Average invested capital 50,000,000\begin{array} { l l } \text { Income } & \$ 8,000,000 \\\text { Sales revenue } & 40,000,000 \\\text { Average invested capital } & 50,000,000\end{array}
Required:
Calculate Corkscrew Corporation's sales margin, capital turnover, and return on investment.


Definitions:

After-Tax Discount

The reduction in price or cost of an item after accounting for the impact of taxes.

Income Tax Rate

The percentage of earnings taxed on entities or individuals.

Profitability Index

A financial metric used to evaluate the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment cost.

Investment Projects

Initiatives undertaken by businesses or individuals involving the allocation of resources with the expectation of future returns.

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