Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 Benson Corporation's balance sheet indicates that the company has $530,000 invested in operating assets. During Year 2, Benson earned operating income of $56,180 on

5
image text in transcribed
image text in transcribed
Benson Corporation's balance sheet indicates that the company has $530,000 invested in operating assets. During Year 2, Benson earned operating income of $56,180 on $1,060,000 of sales, Required a. Compute Benson's profit margin for Year 2. b. Compute Benson's turnover for Year 2. c. Compute Benson's return on investment for Year 2 d. Recompute Benson's Rol under each of the following independent assumptions: (1) Sales increase from $1,060,000 to $1,272,000, thereby resulting in an increase in operating income from $56,180 to $69,960, (2) Sales remain constant, but Benson reduces expenses, resulting in an increase in operating income from $56,180 to $58,300. (3) Benson is able to reduce its invested capital from $530,000 to $424,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to Reg D Compute Benson's profit margin, turnover and return on investment for Year 2. (Round "Profit margin" and "Return on investment to 1 decimal place.) Profit margin Turnover Return on investment % times % ReqD> Required a. Compute Benson's profit margin for Year 2. b. Compute Benson's turnover for Year 2. c. Compute Benson's return on investment for Year 2 d. Recompute Benson's ROI under each of the following independent assumptions: (1) Sales increase from $1,060,000 to $1,272,000, thereby resulting in an increase in operating income from $56,180 to $69,960. (2) Sales remain constant, but Benson reduces expenses, resulting in an increase in operating income from $56,180 to $58,300. (3) Benson is able to reduce its invested capital from $530,000 to $424,000 without affecting operating income, Complete this question by entering your answers in the tabs below. Reg A to C Reg D Recompute Benson's ROI Ender each of the following independent assumptions: (Do not round Intermediate calculations. Round your answers to 2 decimal places. (1.0.0.2345 should be entered as 23.45).) (1) Sales increase from $1,060,000 to $1,272,000, thereby resulting in an increase in operating Income from $56,180 to $69,960 (2) Sales remain constant, but Benson reduces expenses, resulting in an increase in operating income from $56,180 to $58,300 (3) Benson is able to reduce its invested capital from $530,000 to $424,000 without affecting operating income Show less Return on investment (1) % (2) % (3) %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Marketing

Authors: David Brown, Alex Thompson

1st Edition

0367773422, 9780367773427

More Books

Students also viewed these Accounting questions

Question

2. Prevent fights by avoiding crowded work spaces.

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago

Question

3. Explain how to conduct an appraisal feedback interview.

Answered: 1 week ago

Question

1. Answer the question, Who should do the appraising?

Answered: 1 week ago