Fanning Corporations balance sheet indicates that the company has $550,000 invested in operating assets. During 2018, Fanning earned operating income of $60,500 on $1,100,000 of sales.

Required

1. Compute Fannings profit margin for 2018.

2. Compute Fannings turnover for 2018.

3. Compute Fannings return on investment for 2018.

4. Recompute Fannings ROI under each of the following independent assumptions: (1) Sales increase from $1,100,000 to $1,320,000, thereby resulting in an increase in operating income from $60,500 to $67,320. (2) Sales remain constant, but Fanning reduces expenses, resulting in an increase in operating income from $60,500 to $62,700. (3) Fanning is able to reduce its invested capital from $550,000 to $440,000 without affecting operating income.