Given the Following Information for the Northern Division $$\begin{array} { l l } \text { Asset base } & \$ 500,000 \\\text { Sales revenues } & \$ 725,000 \\\text { Expenses } & \$ 662,500\end{array}$$

Essay

Given the following information for the Northern Division: $$\begin{array} { l l } \text { Asset base } & \$ 500,000 \\\text { Sales revenues } & \$ 725,000 \\\text { Expenses } & \$ 662,500\end{array}$$ Required: A. What is the margin, turnover, and ROI for the Northern Division?
The Northern Division has an option to make an additional investment that would add
B. $\quad \$ 100,000$ to the asset base. It would generate an additional $\$ 50,000$ in sales revenue and no additional expenses. What would be the effect on margin, turnover, and ROI?
Another alternative (independent of al ternative B) for the Northern Division is to run an
C. advertising campaign that would require additional advertising expenses of $\$ 37,500$ , but the best estimate is the campaign would generate an additional $\$ 75,000$ of revenue. What would be the effect on margin, turnover, and ROI?