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Using ROI and RI to evaluate investment centers Wolf Paints is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint

Using ROI and RI to evaluate investment centers
Wolf Paints 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 Administrative. The following is selected divisional information for its two largest divisions:
Net Sales Revenue Operating Income Average Total Assets
Paint Stores $3,980,000 $476,000 $1,380,000
Consumer $1,315,000 $195,000 $1,600,000
Management has specified a 21% target rate of return
1. Calculate each divisions ROI. Round to four decimal points
2. Calculate each divisions profit margin ratio.
3. Calculate each divisions asset turnover ratio
4. Calculate each division RI

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