Analysis of return on invested assets, comparison of three divisions. Easy Paints Inc. is a manufacturer of paints. It has three divisions: indoor paints, outdoor paints, and special purpose paints. Results for the past three years are as follows (in thousands):

REQUIRED Use the DuPont method to explain changes in the operating income to total assets ratio over the 2008 to 2010 period for each division. Comment on the results.LO1

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Indoor Outdoor Special Purpose Total Easy Paints 2008 Revenues $15,000 $ 8,000 $12,000 $35,000 Operating Income 1,500 800 1,800 4,100 Total Assets 30,000 20,000 15,000 65,000 2009 Revenues 16,000 8,000 8,000 32,000 Operating Income 1,600 750 900 3,250 Total Assets 28,000 20,000 14,000 62,000 2010 Revenues 17,000 8,000 5,000 30,000 Operating Income 1,800 700 1,000 3,500 Total Assets 25,000 15,000 10,000 50,000