ROI and Residual Income: Basic Computations Watkins Associated Industries is a highly diversified company with three divisions: Truck- ing. Seafood, and Construction. Assume that the company uses return on investment and residual income as two of the evaluation tools for division managers. The company has a minimum desired rate of return on investment of 15 percent with a 30 percent tax rate. Selected operating data for three divisions of the company follow. Trucking Division Seafood Division Construction Division Sales. Operating assets Net operating income. $1,250,000 650,000 146,250 $800,000 300,000 52,800 $950,000 400,000 79,600 REQUIRED (A) Compute the sales margin for each division. This is also called "profit margin". (B) Compute the Capital Turnover Ratio for each division. Trucking Seafood = Construction (C) Compute the return on investment for each division. (Round answers to three decimal places.) Trucking ROI Seafood ROI Construction ROI =