Zachary Corporations balance sheet indicates that the company has $690,000 invested in operating assets. During the year, Zachary earned operating income of $95,220 on $1,380,000 of sales.

Required

1. Compute Zacharys profit margin for the year.

2. Compute Zacharys turnover for the year.

3. Compute Zacharys return on investment for the year.

4. Recompute Zacharys ROI under each of the following independent assumptions: (1) Sales increase from $1,380,000 to $1,656,000, thereby resulting in an increase in operating income from $95,220 to $107,640. (2) Sales remain constant, but Zachary reduces expenses, resulting in an increase in operating income from $95,220 to $97,980. (3) Zachary is able to reduce its invested capital from $690,000 to $552,000 without affecting operating income.