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available for the past year (in thousands of dollars): (Click the icon to view the information.) Read the Requirement 1. Calculate each division's ROI. First
available for the past year (in thousands of dollars): (Click the icon to view the information.) Read the Requirement 1. Calculate each division's ROI. First enter the formula, then calculate each division's ROI using the expanded formula. Interpret your results. Each division's ROI is however, the has an even higher ROI than the Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin. Interpret your results. The Professional Division is earning about on each dollar of sales whereas the Residential Division is only earning about on each dollar of sales. The higher sales margin helps to account for its higher ROI. Requirement 3. Calculate each division's capital turnover. Interpret your results. First enter the formula, then calculate each division's capital turnover. (Round your answer to two decimal places.) Interpret your results. The Professional Division is generating about of sales for every dollar of assets. The Residential Division is generating about of sales for each dollar of assets invested. The is more efficient. Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? First enter the expanded formula, then calculate each division's ROI using the expanded formula. irst enter the expanded formula. then calculate each division's ROI usina the expanded formula. Confirm your results from Requirement 1. oes your answer for the residential ROI agree with the basic ROI? oes your answer for the professional ROI agree with the basic ROI? Vhat can you conclude? Even though the efficiency (as measured by the capital turnover) is higher than that of the the profitability (as measured by the sales argin) is so much higher that it causes its ROI to be much higher than the Requirement 5. Calculate each division's residual income (RI). Interpret your results. irst enter the formula, then calculate each divisions RI. Requirement 5. Calculate each division's residual income (RI). Interpret your results. First enter the formula, then calculate each divisions RI. Interpret your results. exceeding management's expectations. Data table Assume that management has a 25% target rate of return for each division. Requirements 1. Calculate each division's ROI. 2. Calculate each division's sales margin. Interpret your results. 3. Calculate each division's capital turnover. Interpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? 5. Calculate each division's residual income (RI). Interpret your results
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