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Vernon Corporation's balance sheet indicates that the company has $ 6 7 0 , 0 0 0 invested in operating assets. During Year 2 ,
Vernon Corporation's balance sheet indicates that the company has $ invested in operating assets. During Year Vernon earned operating income of $ on $ of sales.
Required
a Compute Vernon's profit margin for Year
b Compute Vernon's turnover for Year
c Compute Vernon's return on investment for Year
d Recompute Vernon's ROI under each of the following independent assumptions:
Sales increase from $ to $ thereby resulting in an increase in operating income from $ to $
Sales remain constant, but Vernon reduces expenses, resulting in an increase in operating income from $ to $
Vernon is able to reduce its invested capital from $ to $ without affecting operating income
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