Response to the following problem:
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 ........ 187,500
Operating income ................... $ 63,750
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:
1. Average operating assets
2. Margin
3. Turnover
4. Return on investment