One division of a company has reported the following operating results for the year just ended:

Sales................................................................$600,000
Operating income..............................................72,000
Average operating assets...............................300,000

Required:

1. Compute the margin percentage, turnover, and ROI for this division.

2. If management sets a minimum required rate of return on average operating assets of 20%, what is the RI for this division for the year?

3. Explain the meaning of RI, and identify one strength and one weakness of measuring performance using RI.