Problem $15-22$A $($Algo$)$ Return on investment LO $15-6$

Baird Corporation's balance sheet indicates that the company has $$520,000$ invested in operating assets. During Year $2,$ Baird earned operating income of $$54,080$ on $$1,040,000$ of sales.

Required

a$.$ Compute Baird's profit margin for Year $2.$

b$.$ Compute Baird's turnover for Year $2.$

c$.$ Compute Baird's return on investment for Year $2.$

d$.$ Recompute Baird's ROI under each of the following independent assumptions:

$(1)$ Sales increase from $$1,040,000$ to $$1,248,000,$ thereby resulting in an increase in operating income from $$54,080$ to $$62,400.$

$(2)$ Sales remain constant, but Baird reduces expenses, resulting in an increase in operating income from $$54,080$ to $$56,160.$

$(3)$ Baird is able to reduce its invested capital from $$520,000$ to $$416,000$ without affecting operating income.

Complete this question by entering your answers in the tabs below.

Req $A$ to $C$

Compute Baird's profit margin, turnover and return on investment for Year $2.$

Note: Round "Profit margin" and "Return on investment" to $1$ decimal place $($i$.$e$.,0\mathrm{.}234$ should be entered as $23\mathrm{.}4).$

$\backslash$table$[[$Profit margin,,$\%$