Acme Inc. has several branches. The following financial statements belong to the branch named "Gamma Branch."

Gamma Branch Income Statement for the Year Ended September 30, Year 7:

• Sales Revenue: $175,000
• Cost of Goods Sold: $105,000
• Gross Margin: $70,000
• Operating Expenses: $25,000
• Depreciation Expense: $10,000
• Operating Income: $35,000
• Nonoperating Income: $8,000
• Loss on Sale of Vehicle: $3,000
• Net Income: $40,000

Gamma Branch Balance Sheet as of September 30, Year 7:

• Cash: $20,000
• Accounts Receivable: $35,000
• Inventory: $45,000
• Vehicles (less accumulated depreciation): $60,000
• Total Assets: $160,000
• Accounts Payable: $15,000
• Notes Payable: $25,000
• Stockholders' Equity: $120,000

Required:

1. Calculate the ROI for Gamma Branch.
2. Acme Inc. has a desired ROI of 14%. Gamma Branch has an investment opportunity of $60,000 at an ROI of 16%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Gamma Branch.
4. Compute the asset turnover ratio for Gamma Branch.
5. Evaluate whether Gamma Branch met the desired ROI after the new investment.