Refer to the information for Barnard Manufacturing on the previous page. Round answers to two decimal places.

Barnard Manufacturing earned operating income last year as shown in the following income statement:

Sales...............................................$4,000,000

Cost of goods sold................................2,100,000

Gross margin......................................$1,900,000

Selling and administrative expense.............1,100,000

Operating income.................................$ 800,000

Less: Income taxes (@ 40%)......................320,000

Net income........................................$ 480,000

At the beginning of the year, the value of operating assets was $2,700,000. At the end of the year, the value of operating assets was $2,300,000.

Required:

Calculate

(1) Average operating assets,

(2) Margin,

(3) Turnover,

(4) Return on investment.