ROI, Margin, Turnover

Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division.

Furniture Division:

	Year 1	Year 2
Sales	$35,220,000	$37,430,000
Operating income	1,408,800	1,497,200
Average operating assets	10,000,000	10,000,000

Houseware Division:

	Year 1	Year 2
Sales	$12,930,000	$13,339,100
Operating income	698,220	586,920
Average operating assets	5,000,000	5,000,000

Required:

Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places.

1. Compute the ROI and the margin and turnover ratios for each year for the Furniture Division.

	Furniture Division
	ROI	Margin	Turnover
Year 1	fill in the blank 1 %	fill in the blank 2 %	fill in the blank 3
Year 2	fill in the blank 4 %	fill in the blank 5 %	fill in the blank 6

2. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division.

	Houseware Division
	ROI	Margin	Turnover
Year 1	fill in the blank 7 %	fill in the blank 8 %	fill in the blank 9
Year 2	fill in the blank 10 %	fill in the blank 11 %	fill in the blank 12

3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Furniture Division.

The increase in the Furniture Division ROI is due to the increase in turnover.The increase in the Furniture Division ROI is due to the increase in margin.

Indicate the reason for change in ROI from Year 1 to Year 2 for the Houseware Division.

The decrease in the Houseware Division ROI is due to the decrease in turnover.The decrease in the Houseware Division ROI is due to the decrease in margin.