Ace Paints is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration. Read the requirements. The following is selected divisional information for its two largest divisions: Paint Stores and Consumer. (Click the icon to view the information.) Management has specified a 20% target rate of return. Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Paint Stores Consumer Requirement 2. Calculate e Begin by selecting the formu Paint Stores Consumer The division Requirement 3. Calculate e Begin by selecting the formu| Paint Stores Consumer The division is more efficient in generating sales with its average total assets. Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. Now calculate ROI for each division using the expanded ROI formula. (Enter your answers as a percent rounded to two decimal places, X.XX\%.) Using the expanded formula, the ROI for the Paint Stores division is Using the expanded formula, the ROI for the Consumer division is The Consumer division's profitability on each dollar of net sales revenue is Consumer division's ROI. Requirement 5. Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI. First, select the formula to calculate residual income (RI). Now calculate each division's RI. (Use a minus sign or parentheses to enter negative residual income.) The RI for the Paint Stores division is than the Paint Stores division's profitability. However, the Paint Stores division's efficiency is significantly than the Consumer division's efficiency. These results cause the Paint Stores division's ROI to be the The Rl for the Consumer division is The division is more efficient in generating sales with its average total assets. Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. Now calculate each division's RI. (Use a minus sign or parentheses to enter negative residual income.) The Rl for the Paint Stores division is The RI for the Consumer division is meeting management's target rate of return. A division with a negative RI should consider Requirement 6. Describe some of the factors that management considers when setting its minimum target rate of return. Management different minimum target rates for different divisions. For example, management require a higher target rate of return from a division operating in a riskier business environment. Management will need to decide for the calculations and whether it should be net of