Thriftco operates a chain of retail stores. The following data are for the stores of the Plains Division for the most recent year (in thousands of dollars).

	Fargo	Sioux Falls	Omaha
Sales	1,200	1,300	1,500
Cost of Goods Sold	624	728	750
Gross Margin	576	572	750
Expenses:
Occupancy	62	66	74		(Depreciation, property tax, insurance, utilities)
Salaries/wages	297	333	389
Advertising	60	56	82		(50% local, 50% allocated corporate advertising)
Miscellaneous	5	6	7
Overhead	108	117	135		(general corporate overhead, allocated at 9% of sales)
	532	578	687
Segment margin	44	-6	63
Average operating assets	1,000	950	1,100

Required:
a) Recompute segment margin, using concepts learned in class. Use the recomputed numbers to answer the remaining questions.
b) Is the Sioux Falls store really losing money? Explain briefly.
c) Compute ROI for each store.
d) Compute residual income for each store, assuming that Thriftco's target ROI is 15%.
e) Which is the top performing store? Identify the main reason for its superior performance.