P2422A Using ROI and R] to evaluate investment centers; Learning Objeclive 4 1Wolf Paints is a national paint manufacturer and retailer. The company is segmented into ve divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration. The following is selected divisional information for its two largest divisions: Paint Stores and Consumer. Net Sales Operating Average Revenue Income Total Assets Paint Stores 35 3,980,000 $ 476,000 S 1,380,000 Consumer 1,315,000 195,000 1,000,000 Management has specied a 21% target rate of return. Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places. 2. Calculate each division's profit margin ratio. Interpret your results. 3. Calculate each division's asset turnover ratio. Interpret your results. 4. Use the expanded ROI formula to conrm your results from Requirement 1. Interpret your results. 5. Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI. 6. Describe some of the factors that management considers when setting its minimum target rate of return