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File Edit View History Bookmarks People Window Help tamarin fruit-Google Search x Connect MHE eBook-Edmonds, Fund Secure https://newconnect.mheducation.com/flow/connect.html Homework Saving Help Save Fanning Corporation's balance sheet indicates that the company has $550,000 invested in operating assets. During 2018, Fanning earned operating income of $60,500 on $1,100,000 of sales Required a Compute Fanning's proft margin for 2018 b. Compute Fanning's turnover for 2018. c Compute Fanning's return on investment for 2018 d. Recompute Fanning's ROl under each of the following Independent assumptions: Sales increase from $1,100,000 to $1,320,000, thereby resulting in an increase in operating income from $60,500 to $67320. 2) Sales remain constant, but Fanning reduces expenses, resulting in an increase in operating income from $60,500 to $62,700 (3) Fanning is able to reduce its invested capital from $550,000 to $440,000 without affecting operating income. Complete this question by entering your answers in the tabs below Reqs A to CReq Compute Fanning's profit margin, turnover and return on investment for 2018. (Round "Profit margin and "Return on investment" to 1 decimal place.) Proft margi

Explanation / Answer

Answer a to c

Answer D

1 : Operating Income = $67,320;

Operating Assets =$550,000

2 : Operating Income = $62,700 ;

Operating Assets =$550,000

3 : Operating Income = $60,500 ;

Operating Assets =$440,000

Particulars Working Total Profit Margin Operating Income / Sales = $60,500 / $1,100,000 5.5 % Turnover Sales / Operating Assets = $1,100,000 / $550,000 2 times Return on Investment Operating Income / Operating Assets =  $60,500 / $550,000 11 %

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