The Following Information Is Available for Northern Division Required:
A

Essay

The following information is available for Northern Division: $\begin{array}{ll}\text { Asset base } & \$ 500,000 \\\text { Sales revenues } & \$ 725,000 \\\text { Operating expenses plus cost of goods sold } & \$ 662,500\end{array}$ Required:
A. Calculate the margin, turnover, and ROI.
B. The Northern Division has an option to make an additional investment that would add $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?
C. Another alternative (independent of alternative B) for the Northern Division is to run an 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?