The profit margin for the Central Division of a company is 20%, and the investment turnover is 2.8. What is the return on investment for the Central Division?

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

Investment Turnover

A measure of a company's efficacy in using its assets to generate revenue, calculated by dividing sales by the average investment.

Profit Margin

is the percentage of revenue that remains as profit after all expenses are subtracted from sales.

Return On Investment

A measure of the profitability and efficiency of an investment, calculated by dividing the gain from an investment by the cost of the investment.