Compute baird profit margin

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Baird Corporation's balance sheet indicates that the company has $520,000 invested in operating assets. During 2018, Baird earned operating income of $54,080 on $1,040,000 of sales.

Required

Question A. Compute Baird's profit margin for 2018.

Question B. Compute Baird's turnover for 2018

Question C. Compute Baird's return on investment for 2018.

Question 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.

Reference no: EM132476326

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