ROI and Residual Income Albertson Furniture Company is a retailer of home furnishings. It currently has stores in three cities—San Francisco, Los Angeles, and Phoenix. Operating data for the three stores in 2009 were as follows:

Required:
1. Compute the segment margin for each store.
2. Compute the profit margin ratio for each store.
3. Compute the asset turnover for each store.
4. Compute the ROI for each store.
5. Compute the residual income for each store. (The minimum rates of return for the stores are San Francisco, 15%; Los Angeles, 13%; and Phoenix, 18%.)

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San Francisco Los Angeles Phoenix Revenue $1,500,000 $1,900,000 $1,800,000 Variable costs 900,000 1,200,000 1,200,000 Fixed costs (all direct) 300,000 350,000 250,000 Total assets ... 1,800,000 2,500,000 1,300,000