Compute rundle return on investment

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Rundle Corporation's balance sheet indicates that the company has $620,000 invested in operating assets. During 2018, Rundle earned operating income of $76,880 on $1,240,000 of sales.

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Problem 1: Compute Rundle's profit margin for 2018.

Problem 2: Compute Rundle's turnover for 2018.

Problem 3: Compute Rundle's return on investment for 2018.

Problem 4: Recompute Rundle's ROI under each of the following independent assumptions:

(1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840.
(2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360.
(3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income.

Reference no: EM132838108

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