A condensed income statement for the Jet Ski Division of Amazing Rides Inc. for the year ended December 31, 2012, is as follows: Sales $2,730,000 Cost of goods sold (2,150,300) Gross profit $579,700 Operating expenses (334,000) Operating income $245,700 Invested sets 12,100,000 Assume that the Jet Su Division received no charges from service departments. The president of Amazing Rides has indicated that the division's rate of return on a $2,100,000 investment must be increased to at at 13.55.by the end of the next year it operations are to continue the vision manager is considering the following three roosals protowa | Transfer equipment with a hook what of 5470,000 to other division at no pain or dow and lease smlar equament. The annual base owyments would exceed the amount of deprecation expense on the old equipment by 575,600 This increase insense mould be included as part of the cont of goods sold Safes would remain unchanged Proposal Purchase new and more efficient machining want and thereby reduce the cost of goods sold by 27.200 Sales would remain unchanged, and the old woment, which has no remaining book valut would be wrapped nown or on the new it would increased sets by an additional $1,050,000 for the wew Proposal Reduce weiteres tydscontinuing the tandem sine. This action would news of 5446,300, cost of goods sold of 290,200, and eroting expenses $131,300. Asets of $1,061,200 woud be transferred to other divisions at ne gain or los Required: 1. Using the DuPont formula for return on investment, determine the peut maryn, investment turnover, and return on investment for the Jet Ski Division for the past year. For investment tumover and ROI, round to one decimal place Jet Ski Division Profit margin Investment turnover RO 2. Prepare condensed estimated income statements and compute the invested assets for each proposal Amazing Rides Inc. -Jet Ski Division Estimated Income Statements For the Year Ended December 31, 2012 Proposal 1 Proposal 2 Proposal Invested assets 3. Using the DuPont formula for return on investment, determine the profit margin investment turnover, and return on investment for each proposal. Round interim calculations including previously calculated) and final answer to decimal place Profit margin Investment turnover ROI Proposal 1: Proposal 21 Proposal 3 4. Select whether each of the three proposals would meet the required 13.5% return on investment Proposal 1 Proposal 2 Proposal 5. If the Jet Ski Division were in an industry where the prontmargin could not be increased, how much would the investment turnover have to increase to meet the president's required 13.5% return on investment? Round intermediate calculations to two decimal places and your final answer to one decimal place