26. Return on Investment (ROI) Using Operating Profit Margin and Asset Turnover. Sorrento Company has three divisions-Northwest, South, and East. (This is the same company as the previous exercises. This exercise can be assigned independently.) Segmented income statement information for the most recent fiscal year ended December 31 is shown as follows. Assume average operating assets totaled $15,000,000 for the Northwest division, $6,500,000 for the South division, and $17,500,000 for the East division. Sorrento Company Segmented Income Statements for the Current Fiscal Year Ended December 31 (dollar amounts are in thousands) Northwest Division South Division East Division Sales Cost of goods sold Gross margin Allocated overhead Selling and administrative expenses Operating income Income tax expense (35% rate) Net income $ 22,000,000 10,000,000 $ 12,000,000 4.125,000 5,000,000 $ 2.875,000 1,006,250 S 1.868,750 $ 8,000,000 2,000,000 $ 6,000,000 1,500,000 3,200,000 $ 1,300,000 455,000 S 845,000 $ 18,000,000 7,000,000 $ 11,000,000 3,375.000 5,000,000 52,625,000 918,750 1.706,250 Required: a. For each division, calculate operating profit margin, asset turnover, and resulting return on investment b. Which division has the highest return on investment? For the division that has the lowest return on investment, what can be done to improve this ratio