PLEASE ANSWER QUESTIONS 1-2.

GOALS AND OBJECTIVES To understand the various methods of measuring profit- and investment-center performance, their advantages and disadvantages. To understand how these performance measures influence behavior within the organization and affect decision making OCTOBER CORPORATION The condensed income statement for the importing division of OCTOBER CORPORATION is as follows (assuming no service-department charges): Invested assets at the start of the year were $1,900,000. At the end of the year, invested assets were $2,100,000. The manager of the importing division is considering ways to increase the rate of return on investment. REQUIRED: 1) Using the DuPont formula (the computation shown in the section entitled "Further Analysis of Return on Investment") for rate of return on investment, determine the profit margin, investment turnover and ROI of the importing division. The DuPont method involves breaking the return on investment up into 2 component parts as shown on the bottom of page 528 : 2) If administrative expenses could be reduced by $60,000 without decreasing sales, what would be the impact on the profit margin, investment turnover and ROI of the importing division