ROI and Investment Decisions Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $35,500,000 $38,200,000 Operating Income 1,380,000 1,570,000 Average operating assets 5,010,000 5,010,000 Canned Foods Division: Year 1 Year 2 Sales Operating income Average operating assets $11,800,000 680,000 5,900,000 $12,900,000 590,000 5,900,000 At the end of Year 2, the manager of the Canned Foods Division is concerned about the division's performance. As a result, he is considering the opportunity to invest in two independent projects. The first is juice boxes for elementary school children. The second is fruit and veggie pouches for kids on the go. Without the investments, the division expects that Year 2 data will remain unchanged. The expected operating incomes and the outlay required for each investment are as follows: Operating income Outlay Juice Box Fruit Pouch $28,000 210,000 $15,400 160,000 1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division. Frozen Foods Division. Year 1 ROI % Margin % Turnover Year 2 % % 2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division. Canned Foods Division. Year 1 Year 2 ROI 96 % Margin % % Turnover 3. Indicate the reason for change in ROI from ear 1 to Year 2 for the Frozen Foods Division. The increase in the Frozen Foods Division ROI is due to the increase in turnover. Indicate the reason for change in ROI from Year 1 to Year 2 for the Canned Foods Division. The decrease in the Canned Foods Division ROI is due to the decrease in margin. 4. Which of the data analytic types-descriptive, diagnostic, predictive or prescriptive-is Allard using in comparing Year 1 to Year 2 for the ratios? 4