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Vemon Corporation's balance sheet indicates that the company has $670,000 invested in operating assets. During the year, Vernon earned operating income of $89,780 on $1,340,000
Vemon Corporation's balance sheet indicates that the company has $670,000 invested in operating assets. During the year, Vernon earned operating income of $89,780 on $1,340,000 of sales. Required . Compute Vernon's profit margin for the year. b. Compute Vemon's turnover for the year c. Compute Vemon's retum on investment for the yeor. d. Recompute Vernon's ROl undereach of the following independent assumptions: (i) 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) Soles 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. Compute Vemon's profit marain, turnover and raturn on investment for the vear. (Round "Profit margin" and "Return on investrment" to i decimal place (i.e., 0.234 should be entered as 23.4).) Complete this question by entering your answers in the tabs below. Recompute Vernon's ROI under each of the following independent assumptions: (Do not round intermediate calculations. Round your answers to 2 decimal places. (1.e., 2345 should be entered as 23.45).) (1) 5a ales 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) Vemon is able to reduce its irvested capital from $670,000 to $536,000 without affecting operating income
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