The profit margin for the Central Division is 20%, and the investment turnover is 2.8. The return on investment (ROI) for the Central Division is

A) 20%
B) 7.1%
C) 14%
D) 56%

Investment Turnover

A ratio measuring how efficiently a company generates sales from its inventory investments.

Profit Margin

A financial metric expressing the percentage of revenue that remains as profit after all operating expenses are deducted.

Return on Investment

A financial metric used to measure the efficiency of an investment, calculated by dividing the profit gained from the investment by its cost.