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Problem 15-22A (Algo) Return on investment LO 15-6 Rundle Corporation's balance sheet indicates that the company has $620,000 invested in operating assets. During the
Problem 15-22A (Algo) Return on investment LO 15-6 Rundle Corporation's balance sheet indicates that the company has $620,000 invested in operating assets. During the year, Rundle earned operating income of $76,880 on $1,240,000 of sales. Required a. Compute Rundle's profit margin for the year. b. Compute Rundle's turnover for the year. c. Compute Rundle's return on investment for the year. d. Recompute Rundle's ROI under each of the following independent assumptions: (1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840. (2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360. (3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to C Req D Compute Rundle's profit margin, turnover and return on investment for the year. (Round "Profit margin" and "Return on Investment" to 1 decimal place (i.e., 0.234 should be entered as 23.4),) a. Profit margin b. Turnover c. Return on investment times % Regalo C Req D >
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