Review Case 10.32 in your textbook. Using the questions provided as a guide, discuss your suggested strategy(ies) for improving ROI and the steps that the company would have to implement to obtain the desired result(s).

Segment margin income statement Bridges Optics manufactures two products: micro-scopes and telescopes. Information for each product is as follows.

Microscopes Telescopes Sales price $ 40 $ 30 Sales volume 300,000 150,000 Variable cost per unit$ 18 $ 17Annual traceable fixed expenses $3,800,000 $1,200,000Annual allocated common fixed expenses $2,400,000 $1,000,000

Calculate the margin and asset turnover for Centex Yarns three divisions. Show that margin asset turnover equals the return on investment for each division as reported in the text. b. Compare the margin and asset turnover for the three divisions and make suggestions for increasing the return on investment of each division.

Centexs Market Measure Ratios 2020 2019Earnings per share $0.80 $0.78Price/earnings ratio 25 times 20 timesDividend payout ratio 15.0% 15.4%DivisionRope DivisionNylon Fibers DivisionSegment Margin $1,802,000 $2,152,000 $ 865,000Average Assets $8,153,000 $8,406,250 $2,703,000ROI $1,802,000 __________ $8,153,000 = 22.1% $2,152,000 ___________ $8,406,250 = 25.6% $ 865,000 __________ $2,703,000 = 32

Profit margin $865,000 _ $8,650,000 = 10.00% $1,199,600 _ $9,515,000 = 12.61%Asset turnover $8,650,000 _ $2,703,000 = 3.2 $9,515,000 _ $2,703,000 = 3.52 ROI10.00% 3.2 = 32.00% 12.61% 3.52 = 44.39%