Learning Objective 5 4. Use the expanded ROI formula to contirm your results Interpret your results. 5. Calculate the company's RI. Interpret your results. P24-30A Using ROI and RI to evaluate investment centers Wolf Paints is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sol through home improvement stores). Automotive (sales to auto manufacturers), Inter national, and Administration. The following is selected divisional information for its two largest divisions: Paint Stores and Consumer. 4. Paint Stores's ROI 34.49% Net Sales Revenue Operating Income Average Total Assets Paint Stores Consumer $ 3,980,000 1,315,000 $476,000 195,000 $1,380,000 1,600,000 Management has specified a 21% target rate of return. Cost Allocation and Ress Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places. 2. Calculate each division's profit margin ratio. Interpret your results. 3. Calculate each division's asset turnover ratio. Interpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. 5. Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI. 6. Describe some of the factors that management considers when setting its minimum target rate of return