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Data table Berpamin Doore is a national paint manuloctuter ard retaloe. The compary is segmened into five divisions: Parn Stores (beanded relail locations), Consumer (paint

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Data table Berpamin Doore is a national paint manuloctuter ard retaloe. The compary is segmened into five divisions: Parn Stores (beanded relail locations), Consumer (paint sold through home improvement stores). Automotive (salos to aulo manulacturers), intemational, and Administration. Read the reguitments The follewing is selected divisional information for its two largest divisions: Paint Stores and Consumer. Click the icon to vew the information.) Management has specified a 20% target fate of tetuen Requirement 1. Cakulate each division's ROl. Round at of your arswers to four decimal places Begn by selecting the formula to calculate relurn on imvestment (RO), and then enter the ameunts to calculate each division's RON, (Round your calcuations to four decimal places and enter you Requirement 2. Calcilate each division's probe marga rato interpet your resulte decmal places, % ) The divion is more prottabe on each soler of saies Requirement 2, Cakuiate esch dvisior's asset tumaver ratio imerpel your resuls Requirement 4. Use the expanded ROl focmula to conkim your resuts from Requirement 1. Interpret your fesuls. First, select the expanded ROI formula Now caladale ROI for esch divition using the expanded ROI formula. (Enter your answers as a percent reunded to two decimal places, xx% ) Using the expanded formula, the ROI for the Paint Stores division is Uang the expended fomula, the ROI lor the Consumer division is The Consumer division's prottabity on each dolar of net sales reverue is than the Paint Stores division's proftabliy, However, the Paint Stores division's efficiency is signticandy than the Consumer division's efficiency. These results cause the Paint Stores division's ROl to be the Consumer divsion's ROI Requirement 5. Calculate each division's Ri. Interpet your results, and ofler a recommendaben for any division wath negatve RI. Frst seied the formula to caiculate residual income (R). -1 - Now calculate each division's RI. (Use a minus sign or parentheses to enter negotve residual income.) The PVifor the Part Slores division is The RI for the Contumer tivision is meetng management's target rale of retum. A dvision with a negative RI should consider Requirement C. Descrbe some of the tector that makagement considers when seling its minum largat rate of retum Management dfferent minimum tapet nates for dfilerent divisions. Fer example, managenerd buiness enveronent Hanagemert will reed io decide require a higher target rate of ceturn from a dvision opevaing in a river for the colculations and whether it should be not of

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