1.Melbourne Chemical Company reported a 6% operating margin on sales, a 12% pretax operating return on total assets, and $500 million of average total assets. Compute the (a) operating income, (b) total sales, and (c) total asset turnover.
2. Honshu Electronics Corporation reported ¥250 million of sales, ¥20 million of operating income,and a total asset turnover of five times. (¥ is Japanese yen.) Compute the (a) total assets, (b) operating return on sales, and (c) pretax operating return on total assets.