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2 Zirns, a national manufacturar of lawn-mowing and snow-blowing equipment, segments its business nccording to customer bee: prolessional and residentive. The following divisional inloimation way
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Zirns, a national manufacturar of lawn-mowing and snow-blowing equipment, segments its business nccording to customer bee: prolessional and residentive. The following divisional inloimation way available for the post yoar: (Cick the icon to view the information.) Read the cequirements Requirement 1. Calculate ench division's ROI. Round all of your answers to four decimal places. Begin by solecting the formula to calculate return on investment (ROI), and then enter the amounts to calculase each division's ROI, (Enter your ansker as a percent rounded to two decinal placen, Requirement 2. Calculate each divaion's proft margin ratie, Interpret your results. dearimul niacos 5 The residensial divisian is earning about $ of operating income on each dollar of net sales revenue whereas the prolessional division is earning abouts ol operaing inceme on each dollar of net sales revenue. The higher proft margin ratio helps to account for its higher ROI. The residential division is earning abouts of operating income on each dollar of net sales revecue whereas the professional division is escring abouts of coerating income on each Lollar of net sales revenue. The bigher profit margin ratio heips to accourt for as tigher ROL. Requirement 3. Caiculate e8ch division's asset turnover rato. Interpret your results. (Phind your answar to two decmal places, 0 ) Data table of operating income on each dollar of net sales revenue whereas the professional division is higher profit margin ratio helps to account for its higher ROI. 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. What can you conclude? Uivision is earning about $ of operating income on each dollar of net sales revenue whereas the professional division is eari es revenue. The higher profit margin ratio helps to account for its higher ROI. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to tu decimal places, X.XX.) Step by Step Solution
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