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Fill out the white blank at the end of this sentence in Requirement 5 "The Consumer Division should work on improving its..." Requirement 5. Calculate each division's Ri. Interpret your results and offer recommendations for any division with negative RI. capital turnover rate customer service First enter the formula, then calculate the RI for each division (Enter the amount in thousands. Use parentheses or a minus sign for neg Operating income Total assets X Target rate of return) RI Paint Stores $ 465,600 - $ 1,552,000 X 23 %) = $ 108,640 Consumer $ 221,000 - $ 2,600,000 X 23 %) = $(377.000) ROI sales Interpret your results and offer recommendations for any division with negative RI. total assets Only the Paint Stores Division is meeting management's target rate of return. The Consumer Division should work on improving its ROI . Improving this may help the division achieve positive residual income. The company is segmented into five divisions: Paint Stores (branded retail location), Consumer (paint sold through stores such as Sears, Home Depot, and Lowe's), Automotive (sales to auto manufacturers), International, and Administration. The following is selected hypothetical divisional information for the company's two largest divisions: Paint Stores and Consumer (in thousands of dollars). Sales Operating Income Paint Stores ..$ 3,880,000 $ 465,600 Consumer .... $ 1,300,000 $ 221,000 Total Assets $1,552,000 $2,600,000

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