Calculating Average Operating Assets, Margin, Turnover, and Return on Investment

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

Sales $531,250

Cost of goods sold 280,000

Gross margin $251,250

Selling and administrative expense 180,900

Operating income $70,350

Less: Income taxes (@ 40%) 28,140

Net income $42,210

At the beginning of the year, the value of operating assets was $390,000. At the end of the year, the value of operating assets was $460,000.

Required:

For East Mullett Manufacturing, calculate the following:

1. Average operating assets$

2.Margin (round to two decimal places)%

3. Turnover (round to two decimal places)

4. Return on investment (round to one decimal place)