XYZ Corporation operates two investment centers. The financial statements below pertain to the investment center called "Alpha Division."

Alpha Division Income Statement for the Year Ended December 31, Year 5:

• Sales Revenue: $150,000
• Cost of Goods Sold: $90,000
• Gross Margin: $60,000
• Operating Expenses: $15,000
• Depreciation Expense: $10,000
• Operating Income: $35,000
• Nonoperating Income: $5,000
• Loss on Sale of Equipment: $2,000
• Net Income: $38,000

Alpha Division Balance Sheet as of December 31, Year 5:

• Cash: $15,000
• Accounts Receivable: $30,000
• Merchandise Inventory: $40,000
• Equipment (less accumulated depreciation): $50,000
• Total Assets: $135,000
• Accounts Payable: $10,000
• Notes Payable: $15,000
• Stockholders' Equity: $110,000

Required:

1. Calculate the ROI for Alpha Division.
2. XYZ Corporation has a desired ROI of 15%. Alpha Division has an opportunity to invest $50,000 at an ROI of 18%. Calculate the new ROI if the investment is made.
3. Determine the net profit margin for Alpha Division.
4. Compute the asset turnover ratio for Alpha Division.
5. Evaluate whether Alpha Division met the company's desired ROI after the new investment.