Albertson Furniture Company is a retailer of home furnishings. It currently has stores in three cities' San Francisco, Los Angeles, and Phoenix. Operating data for the three stores in 2012 were as follows:

Required:
1. Compute the segment margin for each store.
2. Compute the profit margin ratio for each store.
3. Compute the asset turnover for each store.
4. Compute the ROI for each store.
5. Compute the residual income for each store. (The minimum rates of return for the stores are San Francisco, 15%; Los Angeles, 13%; and Phoenix,18%.)

Transcribed Image Text:

San Francisco Los Angeles Phoenix $1,800,000 S1,900,000 S1,800,000 Revenue. Variable costs Fixed costs (all direct) Total assets S1,500,000 1,200,000 1,200,000 300,000 2,500,000 1,800,000 1,300,000