Data table Net Sales Revenue Operating Income Residential $ 580,000 $ 58,500 $ Professional 1,120,000 156,000 Management has a 25% target rate of return for each division. Print Done - Average Total Assets 180,000 390,000 e e total ass Next question Zachs, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: pro (Click the icon to view the information.) ential. The following divisional information was available for the past year: 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 you + = 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 Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places. 2. 3. 4. Calculate each division's profit margin ratio. Interpret your results. Calculate each division's asset turnover ratio. Interpret your results. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? = Profit margin ratio Print Done Residential Professional + + = = % % The residential division is earning about $ of operating income on each dollar of net sales revenue whereas the professional division is earning about S higher profit margin ratio helps to account for its higher ROI. of operating income on each dollar of net sales revenue. The Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) Residential Professional + + = = Asset turnover ratio The residential division is earning about $ of operating income on each dollar of net sales revenue whereas the professional division is earning about $ higher profit margin ratio helps to account for its higher ROI. of operating income on each dollar of net sales revenue. The Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) Residential Professional The residential division is generating about is more efficient. = Asset turnover ratio = 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 Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? (Enter your answers as a percent rounded to two decimal places, X.XX%.) First, select the expanded ROI formula. The ROI for the residential division is % = ROI Does your answer above agree with the basic ROI for the residential division you calculated in Requirement 1? 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