$($Note: Round all numbers to two decimal places.$)$

Required:

Compute the ROI, margin, and turnover for Years $1,2,$ and $3.$

ROI

$\%$

Margin

$\%$

Turnover

Why did the ROI increase over the Year $3$ level?

The ROI increased because expenses decreased and assets turned over at a higher rate $($sales increased$)$

ROI

Margin

$\%$

Turnover

Why did the ROI exceed the Year $3$ level?

The ROI increased because assets decreased. $$

Conceptual Connection: Assume that all expectations for Year $4$ were realized. Compute the expected ROI, margin, and turnover.

ROI

Margin

$\%$

Turnover