Dependable Networks is a data storage business operating in select cities in Texas. Select financial data is presented below to provide you with the necessary content for performance evaluation purposes.

Dallas Austin San Antonio

Division Division Division Total

Sales revenue 3,185,000 1,400,000 1,200,000 5,785,000

Variable costs 995,000 375,000 310,000 1,680,000

Contribution margin 2,190,000 1,025,000 890,000 4,105,000

Fixed costs 1,680,000 725,000 650,000 3,055,000

Operating income 510,000 300,000 240,000 1,050,000

Interest costs on long-term debt at 10% 450,000

Income before income taxes 600,000

Income taxes at 30% 180,000

Net income 420,000

Net book values at the end of 2020:

Current assets 850,000 700,000 300,000 1,850,000

Long-term assets 2,700,000 1,800,000 800,000 5,300,000

Total assets 3,550,000 2,500,000 1,100,000 7,150,000

Current liabilities 300,000 150,000 50,000 500,000

Long-term debt 4,500,000 Stockholders' equity 2,150,000

Total liabilities and stockholders' equity 7,150,000 Requirement One:

Calculate ROI for each of the three

restaurants by using the condensed ROI formula

Requirement Two:

Calculate Profit Margin (Return on Sales) for each

Calculate Asset Turnover for each

Requirement Three:

Calculate ROI for each of the three again, but

assume assets increase by 400,000 for each one.

Sales and costs remain the same as presented.

Requirement Four:

Calculate ROI for each of the three again, but

assume sales increase by 5% for each one.

Assets and fixed costs remain the same as presented.

Requirement Five:

Calculate ROI for each of the three again, but

assume fixed costs decrease by 10% for each one.

Assets and costs remain the same as presented.