Starcraft manufacturing division of lawn-mowing and snow-blowing equipment, segments its business according to customer type: Professional or Residential. The following division information was available for the past year:

Assume that management has a 25% target rate of return for each division. The weighted average cost of capital for Benchmark is 15% and the effective tax rate is 30%.

What is the Return on Investment for the Professional Division if Asset Turnover = 2.75?

Total Assets $ 205,000 ??? Operating Sales Income $ 635,500 $ 63,500 $1,031,250 $ 165,000 Current Liabilities $ 70,000 $ 150,000 Residential Professional