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Saved Help Save& Exit Sub Vernon Corporation's balance sheet indicates that the company has $670,000 invested in operating assets. During 2018, V earned operating income
Saved Help Save& Exit Sub Vernon Corporation's balance sheet indicates that the company has $670,000 invested in operating assets. During 2018, V earned operating income of $89,780 on $1,340,000 of sales. ernon 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 Reqs A to CReq D Compute Vernon's profit margin, turnover and return on investment for 2018. (Round "Profit margin" and "Return on investment" to 1 decimal place.) Profit margin Turnover Return on investment times KPrey 9 of 12 Next>
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