A condensed income statement for the Motorboat Division of Ride of Your Life Inc. for the year ended December 31, 20Y2, is as follows: Sales $1,980,000 Cost of goods sold (1,513,000) Gross profit $ 467,000 Operating expenses (269,000) Operating income $ 198,000 Invested assets $1,800,000 Assume that the Motorboat Division received no charges from service departments. The president of Ride of Your Life has indicated that the division's rate of return on a $1,800,000 investment must be increased to at least 13% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $360,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would exceed the amount of depreciation expense on the old equipment by $64,800. This increase in expense would be included as part of the cost of goods sold. Sales would remain unchanged. Proposal 2: Purchase new and more efficient machining equipment and thereby reduce the cost of goods sold by $237,600. Sales would remain unchanged, and the old equipment, which has no remaining book value, would be scrapped at no gain or loss. The new equipment would increase invested assets by an additional $900,000 for the year. Proposal 3: Reduce invested assets by discontinuing the bass boat line. This action would eliminate sales of $382,500, cost of goods sold of $255,600, and operating expenses of $112,500. Assets of $911,300 would be transferred to other divisions at no gain or loss. Required: Question Content Area 1. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for the Motorboat Division for the past year. For investment turnover and ROI, Round to one decimal place. Motorboat Division Profit margin fill in the blank c5e828039f81f80_1 10 % Investment turnover fill in the blank c5e828039f81f80_2 1.1 ROI fill in the blank c5e828039f81f80_3 11 % 2. Prepare condensed estimated income statements and compute the invested assets for each proposal. Ride of Your Life Inc.-Motorboat Division Estimated Income Statements For the Year Ended December 31, 20Y2 Proposal 1 Proposal 2 Proposal 3 Sales $Sales $Sales $Sales Cost of goods sold Cost of goods sold Cost of goods sold Cost of goods sold Gross profit $Gross profit $Gross profit $Gross profit Operating expenses Operating expenses Operating expenses Operating expenses Operating income $Operating income $Operating income $Operating income Invested assets $fill in the blank 5271b4f55054fdd_21 $fill in the blank 5271b4f55054fdd_22 $fill in the blank 5271b4f55054fdd_23 Question Content Area 3. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for each proposal. Round interim calculations (including previously calculated) and final answer to one decimal place. Profit margin Investment turnover ROI Proposal 1: fill in the blank 25479b097f81fe0_1 % fill in the blank 25479b097f81fe0_2 fill in the blank 25479b097f81fe0_3 % Proposal 2: fill in the blank 25479b097f81fe0_4 % fill in the blank 25479b097f81fe0_5 fill in the blank 25479b097f81fe0_6 % Proposal 3: fill in the blank 25479b097f81fe0_7 % fill in the blank 25479b097f81fe0_8 fill in the blank 25479b097f81fe0_9 % 4. Select whether each of the three proposals would meet the required 13% return on investment. Proposal 1: No Proposal 2: Yes Proposal 3: Yes 5. If the Motorboat Division were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the president's required 13% return on investment? Round intermediate calculations to two decimal places and your final answer to one decimal place. fill in the blank 25479b097f81fe0_13 %