Jakes Sporting Goods presented two years of data for its Clothing Division and Sports Equipment Division. Clothing Division: Year 1 Year 2 Sales $21,550,000 $22,320,000 Operating Income 2,430,000 1,960,000 Average Operating Assets 5,150,000 5,150,000 Sports Equipment Division: Year 1 Year 2 Sales $28,070,000 $31,250,000 Operating Income 475,000 1,006,000 Average Operating Assets 7,012,000 7,012,000

PART A Compute the ROI and the margin and turnover ratios for the first year for the Clothing Division.

PART B Compute the ROI and the margin and turnover ratios for the second year for the Sports Equipment Division.

PART C Based on the ratios you calculated in Parts A and B, how does the clothing division in year 1 compare to the sports equipment division in year 2? Explain.