(id >i Tywanda Enterprises operates a chain of lumber stores. In 2006, cor¬ porate management examined industry-level data and determined the follow¬ ing performance targets for lumber retail stores:

Asset turnover 2.7 Profit margin 7.0%

The actual 2006 results for the company’s lumber retail stores follow:

a. For 2006, how did the lumber retail stores perform relative to their in¬ dustry norms?

b. Where, as indicated by the performance measures, are the most likely areas to improve performance in the retail lumber stores?

c. What are the advantages and disadvantages of setting a performance tar¬ get at the start of the year compared with one that is determined at the end of the year based on actual industry performance?

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Total assets at beginning of year Total assets at end of year Sales Operating expenses $10,200,000 12,300,000 28,250,000 25,885,000