The following data relate to the Bain-bridge Company's South African subsidiary, which maintains its records in the South African Rand (R), its local currency

Required
a. Using the "DuPont Analysis," compute and disaggregate the subsidiary's return on assets into its return on sales and total asset turnover components under the three alternatives shown.
b. Explain whether the exchange rate ($/R) has been increasing or decreasing and how that change might affect the usefulness of these ratios. Assume that remeasured operating income does not include the remeasurement gain or loss.

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Translated amounts in $ when functional currency is Sales. Operating income...*... Average total assets 1,000,000 8,000,000 $ 750,000 130,000 2,000,000 $ 750,000 150,000 1.400,000 .