Divisional Income Statements and Return on Investment Analysis

E$.$F$.$ Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June $30,20$Y$8,$ are as follows:

Mutual Fund

Division

Electronic

Brokerage

Division

Investment

Banking

Division

Fee revenue $$710,000$ $$750,000$ $$690,000$

Operating expenses $346,000274,800488,400$

Invested assets $2,600,0002,200,0001,400,000$

The management of E$.$F$.$ Lynch Company is evaluating each division as a basis for planning a future expansion of operations.Using the DuPont formula for return on investment, compute the profit margin, investment turnover, and return on investment for each division. Round your answers to one

decimal place.

When faced with limited funds for expansion, management should consider an expansion of the

Division first.