Minor & Neece, Ltd. operates retail clothing stores in Nashville, Knoxville, and Memphis, Tennessee. Each store is evaluated as an investment center. Selected results from the latest year are as...

Minor & Neece, Ltd. operates retail clothing stores in Nashville, Knoxville, and Memphis, Tennessee. Each store is evaluated as an investment center. Selected results from the latest year are as follows:

Required

a. Calculate the margin, asset turnover, and ROI for each of the three stores.

b. The corporate office is giving the stores the option of purchasing a new inventory management system. The new system will cost the stores $100,000; they can expect a $15,000 increase in their annual segment margins, generating a 15% ROI for the investments. If store managers are evaluated based on the trend of their ROIs, which stores will invest in the new inventory management system?