Alpha Company would like to examine the sales margin and assetturnover components of return on investment for three of itsdivisions and has accordingly prepared the following;

Division Investment Division OperatingIncome Sales

E 575,000 75,000 500,000

F 700,000 91,000 542,000

G 1,000,000 176,000 763,000

a. Compute each division's return on investment, salesmargin, and asset turnover

b. COmment on the division's relative rankings on theratios computed in (a).