El Pollo Loco Holdings, Inc. $($LOCO$),$ Spanish for "The Crazy Chicken," operates

almost $500$ restaurants, approximately $40\%$ of which are company$-$owned and the

rest are franchises. El Pollo Loco combines the culinary traditions of Mexico and

California, creating unique menu items such as their signature Chicken Avocado

Burrito. The company aims to improve profitability, in part, by simplifying

operations to make it easier for employees and franchisees to run the restaurants.

Recent data $($in millions$)$ for company$-$operated and franchised restaurants are as

follows:

a$.$ Determine the profit margin for each segment. Round to one decimal place.

b$.$ Determine the investment turnover for each segment. Round to two decimal

places.

c$.$ Use the DuPont formula to determine the return on investment for each segment.

Round to one decimal place.

d$.$ Which of the following statement is true?

The franchised restaurants have the lowest profit margin, highest investment

turnover, and lowest return on investment because El Pollo Loco incurs no cost of

goods sold or operating expense in generating this revenue.

The company$-$operated restaurants have the highest profit margin, investment

turnover, and return on investment because El Pollo Loco incurs no cost of goods

sold or operating expense in generating this revenue.

The company$-$operated restaurants have the lowest profit margin, investment

turnover, and return on investment because El Pollo Loco incurs cost of goods sold

and operating expense in generating this revenue.

Both segments have relatively the same profit margin, investment turnover, and

return on investment because their operating costs are similar.