Chapa 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

	Net Sales	Operating Income		Average Total Assets
Residential	$500,000	$59,150		$182,000
Professional	1,000,000	152,800		382,000

Management has a

23% target rate of return for each division

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?