Gooding Custom Design Generated $320,000 in Operating Income on Sales

question 81

Essay

Gooding Custom Design generated $320,000 in operating income on sales revenue of $2,500,000.The company had $3,000,000 in assets on January 1 and $3,250,000 in assets on December 31.
Required:
a.Calculate Gooding's margin.
b.Calculate Gooding's asset turnover.
c.Calculate Gooding's return on investment.

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Definitions:

Socially-Optimal Quantity

The level of production and consumption that achieves the largest possible economic efficiency, taking into account the external effects on society.

External Benefit

A benefit gained by individuals or firms not directly involved in a transaction, leading to positive side effects or spillovers.

Private Cost

The direct cost that producers or consumers incur through their actions, not including externalities.

Private Value

Refers to the value that an individual or a private entity assigns to a good or service, based on personal assessment rather than market perception.