The condensed income statement for the International Division of King Industries Inc. is as follows (assuming no service department charges):

Sales	$984,000
Cost of goods sold	442,800
Gross profit	$541,200
Administrative expenses	246,000
Income from operations	$295,200

The manager of the International Division is considering ways to increase the rate of return on investment.

a. Using the DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment of the International Division, assuming that $1,230,000 of assets have been invested in the International Division. Round all answers to one decimal place.

Profit margin	_________________ %
Investment turnover	_________________
Rate of return on investment	_________________ %

b. If expenses could be reduced by $49,200 without decreasing sales, what would be the impact on the profit margin, investment turnover, and rate of return on investment for the International Division? Round all answers to one decimal place.

Profit margin	_________________ %
Investment turnover	_________________
Rate of return on investment	_________________ %