6.

ROI, Margin, Turnover

Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division.

Furniture Division:

	Year 1	Year 2
Sales	$33,310,000	$35,970,000
Operating income	1,265,780	1,366,860
Average operating assets	10,000,000	10,000,000

Houseware Division:

	Year 1	Year 2
Sales	$12,350,000	$12,860,300
Operating income	629,850	527,272
Average operating assets	5,000,000	5,000,000

Required:

Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places. 1. Compute the ROI and the margin and turnover ratios for each year for the Furniture Division. Furniture Division ROI Margin Turnover Year 1 % % Year 2 % 2. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division. Houseware Division ROI Margin Turnover Year 1 % % Year 2 % % 3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Furniture Division. Indicate the reason for change in ROI from Year 1 to Year 2 for the Houseware Division