Data Table Sales Operating Income Total Assets Residential $ 635,500 $ 63,550 $ 205,000 Professional $ 1,031,250 $ 165,000 $ 375,000 Assume that management has a 25% target rate of return for each division. Print Done X i 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. Print Done Zula, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to custome type: Professional and Residential. Assume the following divisional information was available for the past year (in thousan of dollars); (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate each division's ROM. First enter the formula, then calculate each division's ROI using the expanded formula. = ROI Residential = % % Professional Il Interpret your results. however, the has an even higher ROI Each division's ROI is than the Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin Sales margin Residential % Professional % Interpret your results The Professional Division is earning about on each dollar of sales whereas the Residential Division is only eaming about on each dollar of sales. The higher sales margin helps to account for its higher ROI Zula, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: Professional and Residential. Assume the following divisional information was available for the past year (in thousands of dollars): (Click the icon to view the information.) Read the requirements. 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.) Capital turnover times Residential Professional times 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 Rol using the expanded formula, * ROI Residential % x % Professional % X % Confirm your results from Requirement 1. Does your answer for the residential ROI agree with the basic ROI? Does your answer for the professional ROI agree with the basic ROI? What can you conclude? Charn from it it or nt the innuit fields and then contin tha nevtustion Read the requirements First enter the expanded formula, then calculate each division's ROI using the expanded formula. ROI Residential % X Professional % X % Confirm your results from Requirement 1. Does your answer for the residential ROI agree with the basic ROI? Does your answer for the professional ROI agree with the basic ROI? What can you conclude? Even though the efficiency (as measured by the capital tumover) is higher than that of the the profitability (as measured by the sales margin) 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, First enter the formula, then calculate each divisions RI X RI Res %) = Prof Interpret your results, exceeding management's expectations Choose from any list or enter any number in the input fields and then continue to the next