Principal Skinner Company produces gourmet cheeses. Selected results from the most current year were as follows:

Sales revenue $3,500,000

Operating income 560,000

Assets 1/1 5,000,000

Assets 12/31 5,800,000

Current liabilities 12/31 925,000

Long-term Liabilities 12/31 3,050,000

Production manager Marge Simpson is considering investing in the purchase of a new fermenting station that will increase the plants production capacity. Based on her research, Marge thinks the station would cost $2,200,000 and would increase sales revenue by $1,750,000 and operating income by $450,000.

1. Calculate Principal Skinners current sales margin, asset turnover, and return on investment.
2. Calculate Principal Skinners sales margin, asset turnover, and return on investment assuming the company purchases the new fermenting station.
3. Assume Marge Simpsons annual bonus is based on the companys return on investment. Will Marge support the purchase of the new fermenting station? Why or why not?