Computer Company reported

$20272027$

sales of

$ $3$ comma $600$ comma $000$$$3,600,000$

and operating income of

$ $183$ comma $600$$$183,600.$

Average total assets during

$20272027$

were

$ $600$ comma $000$$$600,000.$

PiedmontPiedmont

Computer$$ Company's target rate of return is

$1616\%.$

Calculate

PiedmontPiedmont

Computer$$ Company's profit margin$$ ratio, asset turnover$$ ratio, ROI, and RI for

$20272027.$

Comment on the results.

Question content area bottom

Part $1$

Start by calculating

PiedmontPiedmont

Computer$$ Company's profit margin ratio for

$20272027.$

$($Enter the profit margin ratio as a percentage rounded to one decimal$$ place, X$.$X$\%.)$

Operating income

$$

Net sales revenue

$=$

Profit margin ratio

$$183,600$

$$

$$3,600,000$

$=$

$5\mathrm{.}1$

$\%$

Part $2$

Calculate

PiedmontPiedmont

Computer$$ Company's asset turnover ratio for

$20272027.$

$($Round the ratio to two decimal$$ places, X$.$XX$.)$

Net sales revenue

$$

Average total assets

$=$

Asset turnover ratio

$$3,600,000$

$$

$$600,000$

$=$

$6\mathrm{.}00$

Part $3$

Calculate

PiedmontPiedmont

Computer$$ Company's

ROIlong dash$$return

on

investmentlong dash$$for

$20272027.$

$($Enter the ROI as a percentage rounded to one decimal$$ place, X$.$X$\%.)$

Operating income

$$

Average total assets

$=$

ROI

$$183,600$

$$

$$600,000$

$=$

$30\mathrm{.}6$

$\%$

Part $4$

Calculate

PiedmontPiedmont

Computer$$ Company's

RIlong dash$$residual

incomelong dash$$for

$20272027.$

Operating income

$-($

Target rate of return

$$

Average total assets

$)$

$=$

RI

$$183,600$

$-($

$16$

$\%$

$$

$$600,000$

$)$

$=$

$$87,600$

Part $5$

Comment on the results.

We can tell from the ratios that Piedmont Computer Company