B C D E 2 Innovative Selections is a small electronics business operating in select cities in the Southwest. Select financial data is presented below to provide you with the necessary content for perfromance evaluation purposes. The total assets for each division represent average operating assets. 1 Project 3 Part Four Problem (15 points) Dallas Phoenix Tucson Division Division Division Total Sales revenue 3,200,000 1,800,000 2,100,000 7,100,000 8 Variable costs 775,000 475,000 760,000 2,010,000 9 Contribution margin 2,425,000 1,325,000 1,340,000 5,090,000 10 Fixed costs 1,680,000 725,000 1,000,000 3.405.000 11 Operating income 745,000 600,000 340,000 1,685,000 12 Interest costs on long-term debt at 10% 450.000 13 Income before income taxes 14 income taxes at 30% 15 Net income 1,235,000 370,500 864,500 16 Net book values at the end of 2018: 17 Current assets 18 Long-term assets 850,000 700,000 300,000 1,850,000 2,350,000 1,800,000 1,400,000 5.550.000 19 Total assets 3,200,000 2,500,000 1,700,000 7,400,000 20 Current liabilities 500,000 250,000 150,000 900,000 21 Long-term debt 4,500,000 2.000.000 7,400,000 22 Stockholders' equity 23 Total liabilities and stockholders' equity 24 25 Requirement One: 26 Calculate ROI for each of the three 27 restaurants by using the condensed ROI formula 28 29 Requirement Two: 30 Calculate Profit Margin (Retum on Sales) for each 31 Calculate Asset Tumover for each 32 33 Requirement Three: 34 Calculate ROI for each of the three again, but 35 assume sales decrease by 10% for each one 36 Assets and fixed costs remain the same as presented 37 38 Requirement Four: 39 Calculate ROI for each of the three again, but i 40 assume fixed costs increase by 15% for each one 41 Assets and costs remain the same as presented 42 3