EXERCISE 12-9 (30 MINUTES)

2. Margin = Net operating income

Sales

$70,000 + $18,200

= $1,400,000 + $70,000

$88,200

= = 6%

$1,470,000

Turnover =

Average operating assets

$1,400,000 + $70,000

= $350,000

= = 4.2

$350,000