Craycraft Incorporated reported the following results from last year's operations:
At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
Required:
1. What was last year's margin? (Round to the nearest 0.1%.)
2. What was last year's turnover? (Round to the nearest 0.01.)
3. What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)
4. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall margin this year? (Round to the nearest 0.1%.)
5. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall turnover this year? (Round to the nearest 0.01.)
6. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall return on investment will this year? (Round to the nearest 0.1%.)

1. Last year's Margin = Net operating income ÷ Sales = $504,000 ÷ $12,600,000 = 4.0%
2. Last year's Turnover = Sales ÷ Average operating assets = $12,600,000 ÷ $7,000,000 = 1.80
3. Last year's Return on investment = Net operating income ÷ Average operating assets = $504,000 ÷ $7,000,000 = 7.2%
4. If the company pursues the investment opportunity and otherwise performs the same as last year, the margin will be:
5. If the company pursues the investment opportunity and otherwise performs the same as last year, the turnover will be:
Sales = $12,600,000 + $560,000 = $13,160,000
Average operating assets = $7,000,000 + $800,000 = $7,800,000
Turnover = Sales ÷ Average operating assets = $13,160,000 ÷ $7,800,000 = 1.69
6. If the company pursues the investment opportunity and otherwise performs the same as last year, the return on investment will be:
Return on investment = Net operating income ÷ Average operating assets = $537,600 ÷ $7,800,000 = 6.9%