Exercise 10-10 (Part Level Submission) Brockman Pickle Company produces gourmet

Question

Exercise 10-10 (Part Level Submission) Brockman Pickle Company produces gourmet dill pickles. Selected results from the most current year were as follows: Sales revenue Operating income Average total assets $3,772,000 565,800 4,100,000 Production manager Maria Brockman is investigating the purchase of a new brining station that will increase the plant's production capacity. Based on her research, Maria thinks the station would cost $164,000 and would increase sales revenue by $200,000 and operating profit by $30,000 Calculate Brockman's current margin, asset turnover, and return on investment. (Round answers to 2 decimal places, e.g. 52.75. Current Margin Asset Turnover Return on Investment times LINK TO TEXT

Explanation / Answer

a) calculate following :

Margin = 565800*100/3772000 = 15%

Turnover = 3772000/4100000 = 0.92 Times

ROI = 565800*100/4100000 = 13.8%

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