Carol Janicek, a division manager of South wood Corp., provides you with the following information regarding her division:

Beginning of the year assets


End of the year assets


Revenues for year


Expenses for year


Variable expenses, 30 percent of total revenues; remaining expenses, fixed.

a. Compute the profit margin for the year.

b. Compute average assets for the year.

c. Compute asset turnover for the year.

d. Compute return on investment for the year.

e. If Ms. Janicek could increase revenues next year by 25 percent with an increase

in advertising of $15,000 and no changes in asset investment, what

would be her new rate of return?