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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
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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) %

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