ROI, RI) Corporate headquarters set a 14 percent target rate of return for the division located in Sacramento. For 2006, the Sacramento division gener¬ ated $39,000,000 of revenue on average assets of $23,000,000. The division’s variable costs were 45 percent of sales, and fixed costs were $6,750,000. Compute the following items for the Sacramento Division for 2006:

a. ROI

b. Residual income C. Profit margin

d. Asset turnover

 LO.1