Forchen, Inc., provided the following information for two of its divisions for last year:

Required:
1. For the Small Appliances Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. Return on investment (ROI)
2. For the Cleaning Products Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. Return on investment (ROI)
3. What if operating income for the Small Appliances Division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).

Transcribed Image Text:

Small Appliances Division Cleaning Products Division Sales Operating income Operating assets, January l Operating assets, December 31 $34,670,000 $31,320,000 2,773,600 6,394,000 7,474,000 1,252,800 5,600,000 6,000,000