College Coffee Shops operates coffeehouses on college campuses in three districts. The operating performance for each district follows.

a. Using the operating profit margin percentage as the criterion, which is the most profitable district?
b. Using the rate of return on investment as the criterion, which is the most profitable district?
c. Which of the two measures better indicates operating performance? Explain yourreasoning.

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District New Orleans Chicago Denver Sales $1,900,000 $8,500,000 $10,000,000 Operating Profit. .. 200,000 500,000 1,000,000 Investment...2,000,000 6,250,000 8,000,000