Este Famosa earned operating income last year as shown in the following income statement:

Sales ..................................................... $3,750,000

Cost of goods sold .....................................2,250,000

Gross margin ............................................1,500,000

Selling and administrative expense .................. 1,200,000

Operating income .......................................$ 300,000

At the beginning of the year, the value of operating assets was $1,600,000. At the end of the year, the value of operating assets was $1,400,000.

Required:

For Este Famosa, calculate:

1. Average operating assets

2. Margin

3. Turnover

4. Return on investment