B D E F G H L M N Problem 1 The sales, income from operations, invested assets, and residual income for each division of Marcus Company are as follows: Division X Division Y Sales Income from Operations Invested Assets $5,000,000 6,800,000 $645,000 $4,100,000 777,000 Division Z 3,750,000 760,000 Marcus's Minimum desired ROI is: 10% 4,000,000 7,600,000 Formulae: Profit margin = Income from operation / Sales Investment turn-over = Sales / Invested assets ROI using Dupont = Profit margin x Investment turn-over Residual income = Operating income (Invested asset x Minimum ROI) - Required: Determine the following for each division: A. Profit margin B. Investment Turn-over C. ROI using DuPont Formula D. Residual Income Solution: Division X Division Y Division Z Profit Margin Investment Turnover ROI Residual Income