Aurora Enterprises operates several departments. The following financial statements apply to the department called "Sigma Department."

Sigma Department Income Statement for the Year Ended December 31, Year 23:

• Sales Revenue: $900,000
• Cost of Goods Sold: $540,000
• Gross Margin: $360,000
• Operating Expenses: $200,000
• Depreciation Expense: $120,000
• Operating Income: $40,000
• Nonoperating Income: $90,000
• Loss on Sale of Equipment: $80,000
• Net Income: $50,000

Sigma Department Balance Sheet as of December 31, Year 23:

• Cash: $130,000
• Accounts Receivable: $165,000
• Inventory: $180,000
• Equipment (less accumulated depreciation): $500,000
• Total Assets: $975,000
• Accounts Payable: $140,000
• Notes Payable: $150,000
• Stockholders' Equity: $685,000

Required:

1. Calculate the ROI for Sigma Department.
2. Aurora Enterprises has a desired ROI of 34%. Sigma Department has an opportunity to invest $1,000,000 at an ROI of 36%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Sigma Department.
4. Compute the asset turnover ratio for Sigma Department.
5. Evaluate whether Sigma Department met the desired ROI after the new investment.