Franklin Corporations balance sheet indicates that the company has $570,000 invested in operating assets. During 2018, Franklin earned operating income of $64,980 on $1,140,000 of sales.

A.Compute Franklins profit margin for 2018.

B.Compute Franklins turnover for 2018.

C. Compute Franklins return on investment for 2018.

Profit margin		%
Turnover		times
Return on investment		%

D.

Recompute Franklins ROI under each of the following independent assumptions: (1) Sales increase from $1,140,000 to $1,368,000, thereby resulting in an increase in operating income from $64,980 to $82,080. (2) Sales remain constant, but Franklin reduces expenses, resulting in an increase in operating income from $64,980 to $67,260. (3) Franklin is able to reduce its invested capital from $570,000 to $456,000 without affecting operating income.

Return on Investment
(1)		%
(2)		%
(3)		%