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Please help me solve for all 6 values (this is an example of what I actually need to solve).
Showing work will help me solve the actual problem! Thank you in advance!
Solution
ROI = Margin x Turnover
Margin = Net operating Income/ Sales x 100
Turnover = Sales / Average operating Assets
2. Expense Reduced = $3080,this means Net income increased by $3080 + $16,940 = $20,020
Margin = $20,020/ $770,000 = 2.6%
Turnover = $770,000/ $100,000 = 7.7 times
ROI = 2.6% x 7.7 = 20.02%
3. Reduced Operating Assets by $30,000, changed Operating Assets = $100,000 - $30,000 =
$70,000
Margin = $16,940/ $770,000 = 2.2%
Turnover = $770,000/ $70,000 = 11 times
ROI = 2.2% x 11 = 24.2%

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Please help me solve for all 6 values (this is an example of what I .pdf

  • 1. Please help me solve for all 6 values (this is an example of what I actually need to solve). Showing work will help me solve the actual problem! Thank you in advance! Solution ROI = Margin x Turnover Margin = Net operating Income/ Sales x 100 Turnover = Sales / Average operating Assets 2. Expense Reduced = $3080,this means Net income increased by $3080 + $16,940 = $20,020 Margin = $20,020/ $770,000 = 2.6% Turnover = $770,000/ $100,000 = 7.7 times ROI = 2.6% x 7.7 = 20.02% 3. Reduced Operating Assets by $30,000, changed Operating Assets = $100,000 - $30,000 = $70,000 Margin = $16,940/ $770,000 = 2.2% Turnover = $770,000/ $70,000 = 11 times ROI = 2.2% x 11 = 24.2%