Tipton Corporation’s balance sheet indicates that the company has \($300,000\) invested in operating as sets. During 2006, Tipton earned operating income of \($45,000\) on \($600,000\) of sales.

Required

a. Compute Tipton’s margin for 2006.

b. Compute Tipton’s turnover for 2006.

c. Compute Tipton’s return on investment for 2006.

d. Recompute Tipton’s ROI under each of the following independent assumptions.

(1) Sales increase from \($600,000\) to \($750,000\) , thereby resulting in an increase in operating income from \($45,000\) to \($60,000\) .
(2) Sales remain constant, but Tipton reduces expenses resulting in an increase in operating income from \($45,000\) to \($48,000\) .
(3) Tipton is able to reduce its invested capital from \($300,000\) to \($240,000\) without affecting operating income.