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Benson Corporation's balance sheet indicates that the company has $530,000 invested in operating assets. During the year, Benson earned operating income of $56,180 on
Benson Corporation's balance sheet indicates that the company has $530,000 invested in operating assets. During the year, Benson earned operating income of $56,180 on $1,060,000 of sales. Required a. Compute Benson's profit margin for the year. b. Compute Benson's turnover for the year. c. Compute Benson's return on investment for the year. 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A to C Req D Recompute Benson's ROI under each of the following independent assumptions: (Do not round intermediate calculations. Round your answers to 2 decimal places. (i.e., .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. Return on Investment (1) % (2) % (3) % < Req A to C Req D > Show less
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