Question

Requirements 5 and 6 please!

	Using ROI and RI to evaluateinvestment centers
Benjamin Doore is a nationalpaint manufacturer and retailer. The company is segmented into fivedivisions:
Paint Stores (branded retaillocations), Consumer (paint sold through home improvementstores),
Automotive (sales to automanufacturers), International, and Administration. The following isselected
divisional information for itstwo largest divisions: Paint Stores and Consumer:
		Net Sales	Operating Income	Average Total Assets
	Paint Stores	$4,010,000	$482,000	$1,385,000
	Consumer	1,280,000	185,000	1,585,000
	Management has specified a 19% target rate ofreturn.
	Requirements
1.)	Calculate each division's ROI. Round all of youranswers to four decimal places.
2.)	Calculate each division's profit margin ratio.Interpret your results.
3.)	Calculate each division's asset turnover ratio.Interpret your results.
4.)	Use the expanded ROI formula to confirm yourresults from Requirement 1. Interpret your results.
5.)	Calculate each division's RI. Interpret yourresults. Offer a recommendation for any division with negativeRI.
6.)	Describe some of the factors that managementconsiders when setting its minimum target rate of return.