Absolute industries produce tool and die machinery for manufacturers. The company has two divisions. In order to manage the two separate businesses, the operations of Regis are reported separately.

Absolute monitors its divisions on the basis of both unit contribution and return on average investment (ROI) with investment defined as average operating assets employed. All investments in a minimum return of 11% before income taxes.

The 2021 operating statement for Reigis follows.

The division's operating assets employed were $15,750,000 at November 30, 2021, a 5% increase over the 2020 year-end balance.

Reigis Steel Division

Operating Statement for the year ended November 30,2021

($000 Omitted)

Sales Revenue $ 35,000

Less Expeses: Cost of goods sold $ 16,500

Administrative Expenses $3,955

Selling Expenses $2,700 $23,155

Income From Operations Before income taxes $11,845

1) What is the Pretax Profit Margin?

2) What is the Pretax Asset Turnover on average investment in operating assets employed?

3) What is the pretax return on average investment in operating assets employed (ROI)?