Balspar Paints is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded relail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers). International, and Administration. The following is selected divisional information for its two largest divisions: Paint Stores and Consumer. (Click the icon to view the information.) Management has specified a 22% target rate of return. Read the requirements Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (RO), and then enter the amounts to calculate each division's ROI. (Round your calculations to four decimal places and enter vour answer as a percent rounded to two decimal places, X.XX% ) ROL Paini Stores Consumer Requirement 2. Calculate each division's profit margin ratio. Interpret your results Begin by selecling the formula to calculate profit margin ratio, and then enter the amounts to calculate each division's profit margin ratio. (Enter each profit margin ratio as a percent rounded to two decimal places, X.Xx%. ) Profit margin ratio Paint Stores Consumer The division is more profitableon each dollar of sales. Requirement 3. Calculaie each division's asset turnover ratio. Interpret your results. calculate each division's asset turnover ratio, (Round your answers to four decimal places, X.XXXX.) Begin by selecting the formula to calculate asset tunover ratio, and then enter the amounts Asset turnover ratio Paint Stores Consumer The division is more efficient in generating sales with average total assets Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. ROI Now calculate ROl for each division using the expanded ROl formula. (Enter your answers as a percent rounded to two decimal places, X.XX %. ) Using the expanded formula, the ROI for the Paint Stores division is Using the expanded formula, the ROI for the Consumer division is than the Paint Stores division's profitability. However, the Paint Stores division's efficiency is significantly than the Consumer division's efficiency. These results The Consumer division's profitability on each dollar of net sales revenue is the Consumer division's ROI cause the Paint Stores division's ROI to be Requirement 5. Calculate each division's RI. Interpret your resulta, and offer a recommendation for any division with negative R. First, select the formula to calculate residual income (RI) RI Now calculate each division's RI. (Use a minus sign or parentheses to enter negative residual income.) The RI for the Paint Stores division is $ The RI for the Consumer division is S meeting management's target rate of return. A division with a negative RI should consider Requirement 6. Describe some of the factors that management considers when setting its minimum target rate of retum. different minimum target rates for different divisions. For example, management the calculations and whether it should be net of require a higher target rate of return from a division operating in a riskier business environment. Management will need to decide Management X i Requirements Data Table 1. Calculate each division's ROI. Round all of your answers to four decimal Net Sales Operating Average places. Calculate each division's profit margin ratio. Interpret your results. Calculate each division's asset turnover ratio. Interpret your results. Total Assets Revenue Income 2 3 Paint Stores 3,950,000 $ 485.000 $ 1,385,000 4. Use the expanded ROI formula to confirm your results from Requirement 1 Interpret your results. Consumer 1,280,000 1,575,000 188,000 5, Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI Print Done 6. Describe some of the factors that management considers when setting its minimum target rate of return. division's RI. (Use a minus sign or parentheses to enter negative residual inco Print Done