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Auto Parts is a division of MPI International, located in Wadena, Saskatchewan. Auto Parts manufactures various automobile parts, such as bumpers, fenders, and axles, and

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Auto Parts is a division of MPI International, located in Wadena, Saskatchewan. Auto Parts manufactures various automobile parts, such as bumpers, fenders, and axles, and sells them to major auto manufacturers. The division and its management are evaluated by senior corporate management on the basis of investment centre concepts. The following information pertains to operations of the Auto Parts division for 2021 : Operating results: Total revenues Less: Direct variable costs Contribution margin Less: Direct fixed costs Segment margin Less: Allocated corporate costs Operating income $21,250,000 8.750 .000 12.500,000 7.500 .000 5.000,000 3.938 .000 $1.062.000 Required: 1. Compute the margin, turnover, and ROI using operating income and the book value of average total operating assets. 2. Compute ROI replacing net income with segment margin when calculating the margin and average market value of operating assets. 3. Compute RI using operating income and the market value of average net assets. Assume that the required rate of return is 9.5%

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