Gebru Industries Is a Division of a Major Corporation

question 86

Essay

Gebru Industries is a division of a major corporation. Last year the division had total sales of $12,450,000, net operating income of $1,357,050, and average operating assets of $3,000,000. The company's minimum required rate of return is 10%.
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?

Assess the impact of changes in production costs on market supply.

Understand the equilibrium dynamics in response to shifts in demand or supply.

Identify the economic consequences of government price interventions.

Distinguish between buyers and sellers in terms of surplus and market behavior.