XYZ Company has $72,000 of operating income, a profit margin (i. sales margin) of 11%, a target rate of return of 10%, and asset turnover (i. capital…

1. XYZ Company has $72,000 of operating income, a profit margin (i.e. sales margin) of 11%, a target rate of return of 10%, and asset turnover (i.e. capital turnover) of 3 times. The sales in dollars for XYZ Company would be closest to which of the following?

[ROUND ANSWER TO THE NEAREST DOLLAR]

1. Your Corporation has an ROI of 25%, total assets of $5,250,000, and current liabilities of $950,000. What is Your Corporation’s operating income?