Innovative Inc. has different branches. The following financial statements belong to the branch named "Iota Branch."

Iota Branch Income Statement for the Year Ended March 31, Year 12:

• Sales Revenue: $350,000
• Cost of Goods Sold: $210,000
• Gross Margin: $140,000
• Operating Expenses: $60,000
• Depreciation Expense: $30,000
• Operating Income: $50,000
• Nonoperating Income: $25,000
• Loss on Sale of Machinery: $10,000
• Net Income: $65,000

Iota Branch Balance Sheet as of March 31, Year 12:

• Cash: $40,000
• Accounts Receivable: $65,000
• Inventory: $80,000
• Machinery (less accumulated depreciation): $120,000
• Total Assets: $305,000
• Accounts Payable: $35,000
• Notes Payable: $45,000
• Stockholders' Equity: $225,000

Required:

1. Calculate the ROI for Iota Branch.
2. Innovative Inc. has a desired ROI of 17%. Iota Branch has an opportunity to invest $150,000 at an ROI of 19%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Iota Branch.
4. Compute the asset turnover ratio for Iota Branch.
5. Assess if Iota Branch met the company’s desired ROI after the new investment.