Centauri Corporation has different divisions. The following financial statements pertain to the division named "Rho Division."

Rho Division Income Statement for the Year Ended September 30, Year 22:

• Sales Revenue: $850,000
• Cost of Goods Sold: $510,000
• Gross Margin: $340,000
• Operating Expenses: $190,000
• Depreciation Expense: $110,000
• Operating Income: $40,000
• Nonoperating Income: $80,000
• Loss on Sale of Assets: $70,000
• Net Income: $50,000

Rho Division Balance Sheet as of September 30, Year 22:

• Cash: $120,000
• Accounts Receivable: $155,000
• Inventory: $170,000
• Assets (less accumulated depreciation): $450,000
• Total Assets: $895,000
• Accounts Payable: $130,000
• Notes Payable: $140,000
• Stockholders' Equity: $625,000

Required:

1. Calculate the ROI for Rho Division.
2. Centauri Corporation has a desired ROI of 32%. Rho Division has an opportunity to invest $900,000 at an ROI of 35%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Rho Division.
4. Compute the asset turnover ratio for Rho Division.
5. Assess whether Rho Division met the desired ROI after the new investment.