Problem 15-22 Return on investment LO 15-6 Vernon Corporation's balance sheet indicates that the company has $670,000 invested in operating assets. During 2018, Vernon earned operating income of $89,780 on $1,340,000 of sales. Required a. Compute Vernon's profit margin for 2018. b. Compute Vernon's turnover for 2018. c. Compute Vernon's return on investment for 2018. d. Recompute Vernon's ROI under each of the following independent assumptions: (1) Sales increase from $1,340,000 to $1,608,000, thereby resulting in an increase in operating income from $89,780 to $104,520. (2) Sales remain constant, but Vernon reduces expenses, resulting in an increase in operating income from $89,780 to $92,460. (3) Vernon is able to reduce its invested capital from $670,000 to $536,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A to C ReqD Compute Vernon's profit margin, turnover and return on investment for 2018. (Round "Profit margin" and "Return on investment" to 1 decimal place.) a. Profit margin b. Turnover c. Return on investment times LC Reg A to C Reg D > Req A to C Req D Recompute Vernon'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 $1,340,000 to $1,608,000, thereby resulting in an increase in operating income from $89,780 to $104,520. (2) Sales remain constant, but Vernon reduces expenses, resulting in an increase in operating income from $89,780 to $92,460. (3) Vernon is able to reduce its invested capital from $670,000 to $536,000 without affecting operating income. Show less Return on Investment (1) (2)