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

Sales	$1,932,000
Cost of goods sold	869,400
Gross profit	$1,062,600
Administrative expenses	386,400
Operating income	$676,200

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

a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $3,220,000 of assets have been invested in the International Division. Round investment turnover to one decimal place.

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

b. If expenses could be reduced by $96,600 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the International Division? Round investment turnover to one decimal place.

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