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Noriaki's Canning manufactures cans used in a variety of industries. The company split its operations into two divisions: beverages and food products. The information for

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Noriaki's Canning manufactures cans used in a variety of industries. The company split its operations into two divisions: beverages and food products. The information for the past year is as follows: Net Sales Operating Income Average Total Assets Beverages $1,357,500 $273,300 $679,700 Food Products $2,232,400 $426,300 $965,900 Noriaki's Canning management has targeted a 37% rate of return. (Round your answers to two decimal places when needed and use rounded answers for all fut calculations) 1. Calculate each division's ROI. Division Operating Income / Average Total Assets = ROI (%) Beverages 11 Food Products 11 2. Calculate each division's profit margin ratio. Division Operating Income / Net Sales II Profit Margin Ratio (%) Beverages Food Products 11 3. Compute each divisions' assets turnover ratio. Net Sales | Average Total Assets = Asset Turnover Ratio Division Beverages Food Products / / 4. Using the information from Steps 2 & 3, double check your ROI as computed in Step 1. (N these values are using rounded answers and therefore the final percent may be slightly diffe due to rounding errors.) Division Profit Margin Ratio (%) X Asset Turnover Ratio = ROI (%) X 1 Beverages Food Products 11

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