GNC Holdings Inc. is a leading retailer of health and nutrition products, which are sold through both company-operated (3,500 outlets) and franchised retail (3,200 outlets) stores. In addition, GNC manufactures many of the products that it sells through its company-operated and franchised channels. As such, GNC's operating segments are Retail, Franchise, and Manufacturing. The Retail segment is made up of company-operated stores, and the Franchise segment is made up of franchised stores. Recent financial information from these segments is as follows (in millions):

___________________________RetailFranchiseManufacturing

Sales..................................$1,939.........$433....................$486

Income from operations...............349...........157.......................90

Invested assets........................1,573...........512.....................407

A. Determine the profit margin for each segment. (Round percentages to one decimal place.)

B. Why might the profit margin of the Franchise segment be larger than the other two segments?

C. Determine the investment turnover for each segment. (Round to one decimal place.)

D. Use the DuPont formula to determine the return on investment for each segment. (Round percentages to one decimal place.)

E. What is the source of revenues for the Manufacturing segment? What are the revenue reporting considerations for sales to company-operated stores?