Stuart Corporations balance sheet indicates that the company has $650,000 invested in operating assets. During 2018, Stuart earned operating income of $84,500 on $1,300,000 of sales.

Required

1. Compute Stuarts profit margin for 2018.

2. Compute Stuarts turnover for 2018.

3. Compute Stuarts return on investment for 2018.

4. Recompute Stuarts ROI under each of the following independent assumptions: (1) Sales increase from $1,300,000 to $1,560,000, thereby resulting in an increase in operating income from $84,500 to $95,160. (2) Sales remain constant, but Stuart reduces expenses, resulting in an increase in operating income from $84,500 to $87,100. (3) Stuart is able to reduce its invested capital from $650,000 to $520,000 without affecting operating income.

Compute Stuarts 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		times
c.	Return on investment		%

Recompute Stuarts 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. (1) Sales increase from $1,300,000 to $1,560,000, thereby resulting in an increase in operating income from $84,500 to $95,160.

   (2) Sales remain constant, but Stuart reduces expenses, resulting in an increase in operating income from $84,500 to $87,100.

   (3) Stuart is able to reduce its invested capital from $650,000 to $520,000 without affecting operating income.

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Return on Investment
(1)		%
(2)		%
(3)		%