Complete requirements $1-6$ equations please: information for its two largest divisions: Paint Stores and Consumer.

View the information. ${?}^1$

Management has specified a $22\%$ target rate of return.

Requirement $1.$ Calculate each division's ROI. Round all of your answers to four decimal places.

Requirement $2.$ Calculate each division's profit margin ratio. Interpret your results.

The $(5).$ division is more profitable on each dollar of sales.

Requirement $3.$ Calculate each division's asset turnover ratio. Interpret your results.

Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate each division's asset turnover ratio. $($Round your answers to four decimal places, X $.$ XXXX $.)$

Requirement $4.$ Use the expanded ROI formula to confirm your results from Requirement $1.$ Interpret your results.

First, select the expanded ROI formula.

Now calculate ROI for each division using the expanded ROI 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 $=$

Using the expanded formula, the ROI for the Consumer division $=$

$\%$

The Consumer division's profitability on each dollar of net sales revenue is $(11)$

ROI to be $(13)\_$ the Consumer division's ROI.

Requirement $5.$ Calculate each division's RI$.$ Interpret your results, and offer a recommendation for any division with negative RI$.$

First, select the formula to calculate residual income $($RI$).$

$[$

Now calculate each division's RI$.($Use a minus sign or parentheses to enter negative residual income.$)$

RI for the Paint Stores division $=$

The RI for the Consumer division is $].$

meeting management's target rate of return. A division with a negative RI should consider $(18)$

Requirement $6.$ Describe some of the factors that management considers when setting its minimum target rate of return.

Management $(19)$ different minimum target rates for different divisions. For example, management $(20)$

whether it should be net of $(22)$

$2$: Requirements

Calculate each division's ROI. Round all of your answers to four decimal places.

Calculate each division's profit margin ratio. Interpret your results.

Calculate each division's asset turnover ratio. Interpret your results.

Use the expanded ROI formula to confirm your results from Requirement $1.$ Interpret your results.

Calculate each division's RI$.$ Interpret your results, and offer a recommendation for any division with negative RI$.$

Describe some of the factors that management considers when setting its minimum target rate of return.