Effect of Proposals on Divisional Performance A condensed income statement for the Gor Division of Rewind Sports Inc. for the year ended December 31, 20Y2, is as follows: Sales $4,180,000 Cost of goods sold 2,999, B00 1,480,200 Gross profit operating expenses 853,000 s 527,200 Income from aperations $3,200,000 ested assets Assume that the Golf Division received no charges from service departments. The president of Rewind Sports has indicated that the divisian's rate of return on a s3,200,000 investment must be increased to at least 23.8% by the end of the next year if operations are to continue. The division manager is cansidering the following three proposals Proposal 1: Transfer equipment with a book value of $640,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would exceed the amount of depreciation expense on the old equipment by s115,200.This increase in expense would be in as part of the cost of goods sold. Sales would remain unchanged. Proposal 2: Purchase new and more efficient machining equipment and thereby reduce the cost of goods sold by s422,400. Sales would remain unchanged, and the old equipment, which has no remaining book value, would be scrapped at no gain or loss. The new equipment would increase invested assets by an additional si,600,000 for the yea Proposal 3: Reduce invested assets by discontinuing a product line. This action would eliminate sales of $680,000, cost of goods sold of s454,400, and operating expenses of $200,000. Assets of$1.620,200 would be transferred to other divisions at no gain or loss. Required: 1. Using the DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment for the Golf Division for the past year. If required, round your answers to one decimal place. Profit margin: 14 nvestment turnover: 1a ROI 10