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Accounting help This Question: 1 pt 1 of 3 (0 complete) This Test: 3 pts possible Zulas, a national manufacturer of lawn-mowing and snow-blowing equipment,
Accounting help
This Question: 1 pt 1 of 3 (0 complete) This Test: 3 pts possible Zulas, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year: E: (Click the icon to view the information.) Read the requirements Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to two decimal places, X.XX%) ROI Residential Professional Requirement 2. Calculate each division's profit margin ratio. Interpret your results. Begin by selecting the formula to calculate profit margin ratio, and then enter the amounts to calculate each division's profit margin ratio. (Enter each profit margin ratio as a percent rounded to two decimal places, X.XX%.) Profit margin ratio Residential % Professional earning about $ V of operating income on each dollar of net sales revenue. The The residential division is earning about $ of operating income on each dollar of net sales revenue whereas the professional division higher profit margin ratio helps to account for its higher ROI. Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) + = Asset turnover ratio Residential + Professional of net sales revenue for each dollar of average total assets invested. The professional division is generating about of net sales revenue for every dollar of average total assets. The The residential division is generating about is more efficient Choose from any list or enter any number in the input fields and then continue to the next question. Zulas, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year: (Click the icon to view the information.) Read the requirements. resemua Professional % earning about $ V of operating income on each dollar of net sales revenue. The The residential division is earning about $ of operating income on each dollar of net sales revenue whereas the professional division higher profit margin ratio helps to account for its higher ROI. Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) + = Asset turnover ratio Residential + Professional of net sales revenue for each dollar of average total assets invested. The professional division is generating about of net sales revenue for every dollar of average total assets. The The residential division is generating about is more efficient. Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? (Enter your answers as a First, select the expanded ROI formula. Data Table ROI The ROI for the residential division is % Residential Net Sales Revenue Operating Income Average Total Assets $ 540,000 $ 64.680 $ 196,000 1,070,000 168,490 406,000 Does your answer above agree with the basic ROI for the residential division you calculated in Requirement 1? Professional Management has a 23% target rate of return for each division. The ROI for the professional division is % Does your answer above agree with the basic ROI for the professional division you calculated in Requirement 1? Print Done Choose from any list or enter any number in the input fields and then continue to the nextStep by Step Solution
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