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tice Assignment Gradebook ORION ment 8:33 PM / Remaining: 59 min. CALCULATOR MES

ID: 2535726 • Letter: T

Question

tice Assignment Gradebook ORION ment 8:33 PM / Remaining: 59 min. CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION ·RACK NEXT Exercise 10-10 (Part Level Submission) Brockman Pickle Company produces gourmet dill pickles. Selected results from the most current year were as follows Sales revenue Operating income Average total assets $3,852,000 616,320 4,280,000 Production manager Maria Brockman is investigating the purchase of a new brining station that will increase the plant's production capacity. station would cost $160,000 and would increase sales revenue by $200,000 and operating profit by $32,000. Calculate Brockman's current margin, asset turnover, and return on investment. (Round answers to 2 decimal places, e.g. 52.75.) Current Margin Asset Turnover Return on Investment times 9% LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 2 used SAVE FOR LATER SUBIT ANSWER Earn Maximum Points available only if you answer this question

Explanation / Answer

Current margin

= Operating Income / Sales revenue

= $616,320 / $3,852,000

= 0.16 or 16%

Asset turnover

= Sales revenue / Average total assets

= $3,852,000 / $4,280,000

= 0.90 times

Return on investment

= Operating Income / Average total assets

= $616,320 / $4,280,000

= 0.144 or 14.4%