Using ROI and RI to evaluate investment centers
Benjamin Doore is a national paint manufacturer and retailer. The company is segmented into five divisions:
Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores),
Automotive (sales to auto manufacturers), International, and Administration. The following is selected
divisional information for its two largest divisions: Paint Stores and Consumer:
		Net Sales	Operating Income	Average Total Assets
	Paint Stores	$ 4,010,000	$ 482,000	$ 1,385,000
	Consumer	1,280,000	185,000	1,585,000
	Management has specified a 19% target rate of return.
	Requirements
1.)	Calculate each division's ROI. Round all of your answers to four decimal places.
2.)	Calculate each division's profit margin ratio. Interpret your results.
3.)	Calculate each division's asset turnover ratio. Interpret your results.
4.)	Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results.
5.)	Calculate each division's RI. Interpret your results. Offer a recommendation for any division with negative RI.
6.)	Describe some of the factors that management considers when setting its minimum target rate of return.