Calculating Average Operating Assets, Margin, Turnover, Return on Investment $($ROI$)$

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

Small Appliances

Division Cleaning Products

Division

Sales $$34,670,000$ $$31,320,000$

Operating income $2,773,6001,252,800$

Operating assets, January $16,394,0005,600,000$

Operating assets, December $317,474,0006,000,000$

Required:

$1.$ For the Small Appliances Division, calculate:

a$.$ Average operating assets $ fill in the blank $1$

$6,934,000$

b$.$ Margin fill in the blank $2$

$8$

$\%$

c$.$ Turnover fill in the blank $3$

$5$

d$.$ ROI fill in the blank $4$

$40$

$\%$

$2.$ For the Cleaning Products Division, calculate: Round your turnover answer to one decimal place. Enter ROI as a percentage rounded to one decimal place.

a$.$ Average operating assets $ fill in the blank $5$

$5,800,000$

b$.$ Margin fill in the blank $6$

$4$

$\%$

c$.$ Turnover fill in the blank $7$

$5\mathrm{.}4$

d$.$ ROI fill in the blank $8$

$21\mathrm{.}6$

$\%$

$3.$ 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. When required, round the percent to four decimal places before converting to a percentage. For example, $\mathrm{.}88349$ would be rounded to $\mathrm{.}8835$ and entered as $88\mathrm{.}35.$ Enter $"0",$ where ever required.

Average operating assets

Unaffected

by fill in the blank $10$

$0$

$\%$

Margin

Lower

by fill in the blank $12$

$\%$

Turnover

Unaffected

by fill in the blank $14$

$\%$

Return on investment $($ROI$)$

Lower

by fill in the blank $16$

$\%$