Return on investment, Margin, Turnover Ready Electronies is facing competition from Imported goods. Its operating Income margin has been dedining steadily for the past several years. The company been forced to lower prices so that it can maintain its market share. The operating results for the past 3 years are as follows: Year 1 Year 2 Year 3 Sales $11,000,000 $9,500,000 $9,000,000 Operating income 1.200,000 1,345,000 945.000 Average assets 15,000,000 15,000,000 15,000,000 For the coming year Ready's president plans to install IT purchasing and manufacturing system. She estimates that inventaries will be reduced by 70% during the first year of operations, producing a 20% reduction in the average operating assets of the company, which would remain unchanged without the system. She also estimates that sales and operating income will be restored to Year levels because of simultaneus reductions in operating expenses and selling prices. Lower selling prices willow Ready to expand its market share (Note: Round numbers to two decimal places.) Required: 1. Compute the Rot, margin, and turnover for years 1, 2 and 3 Year 1 Margin X % 15.21 x Tumover 1,500,00 950.000, 900,000 2. Conceptual Correction: Suppose that in Year 4 the sales and operating income were Compute the expected ROL, margin, and turnover but inventories remained at the same level is Year 3 Check My Work 4 more Check My Work uses remaining Previous All work saved Emal instructor Save and Ext Submit Assignment for Gradie MacBook Air terles remained at the same level in 3 7. Conceptual Connection Suppose that in the sales and operating income were achieved Compute the expected ROI, margin, and tumover ROL Margis Tumover Why did the ROI in over the Year 3 level The ROI increased because expenses decreased and assets turned over at a higher rate (les increased). 3. Conceptual Connection: Suppose that the wes and net pesting income for Year & remained the same as in ear but inventory reductions were achieved as projected. Compute the ROI, margin, and tumever Why did the ROI exceed the Year 4. Conceptual Connection: Assume that all expectations for year wererated Compute the expected ROI, margin, and turnove Tamaver Why did the Rol e over the Year 3 level? The ROI increased because expense decreased and s u este turned over at a higher rate.