The following financial data applies to PepsiCo Snack Division for the fiscal year ending December 31, Year 12:

Income Statement:

• Sales revenue: $3,500,000
• Cost of goods sold: $2,000,000
• Gross profit: $1,500,000
• Operating expenses: $600,000
• Depreciation: $100,000
• Operating income: $800,000
• Interest expense: $50,000
• Gain on sale of equipment: $25,000
• Net income: $775,000

Balance Sheet:

• Cash: $350,000
• Accounts receivable: $400,000
• Inventory: $450,000
• Fixed assets (net): $700,000
• Total assets: $1,900,000
• Accounts payable: $300,000
• Long-term debt: $400,000
• Stockholders' equity: $1,200,000
• Total liabilities and equity: $1,900,000

Requirements:

1. Calculate the ROI for PepsiCo Snack Division.
2. Evaluate the gross profit margin.
3. Determine the impact of operating expenses on net income.
4. Compute the debt to equity ratio.
5. Assess the significance of the gain on sale of equipment in the overall profitability.