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Data Table - X umer. Benjamin Doore is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail
Data Table - X umer. Benjamin Doore is a national paint manufacturer and retailer. The company is segmented into five divisions: Paint Stores (branded retail locations), Consumer (paint sold through home improvement stores), Automotive (sales to auto manufacturers), International, and Administration. The following is se E: (Click the icon Read the requirements. Management has Average Total Assets rounded to two Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Roy decimal places, X.XX%) Net Sales Operating Revenue Income $ 4,000,000 $ 482,000 $ 1,305.000 190.000 ROI Paint Stores Consumer 1,395,000 1.620.000 Paint Stores Consumer % Print Done 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 L Paint Stores Consumer The division is more profitable on each dollar of sales. Roquuromont 2 Calculatoach disicion's accot turnovor ratio intornrot your roculte Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. Begin by selecting the formula to calculate asset turnover ratio, and then enter the amounts to calculate each division's asset turnover ratio. (Round your answers to four decimal places, X.XXXX.) = Asset turnover ratio Paint Stores Consumer The division is more efficient in generating sales with its average total assets. Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula J = ROI Now calculate ROI for each division using the expanded ROI formula. (Enter your answers as a percent rounded to two decimal places, X.XX%.) Using the expanded formula, the ROI for the Paint Stores division is %. Using the expanded formula, the ROI for the Consumer division is Requirement 4. Use the expanded ROI formula to confirm your results from Requirement 1. Interpret your results. First, select the expanded ROI formula. = ROI Now calculate ROI for each division using the expanded ROI formula. (Enter your answers as a percent rounded to two decimal places, X.XX%.) Using the expanded formula, the ROI for the Paint Stores division is L Using the expanded formula, the ROI for the Consumer division is than the Consumer division's The Consumer division's profitability on each dollar of net sales revenue is efficiency. These results cause the Paint Stores division's ROI to be than the Paint Stores division's profitability. However, the Paint Stores division's efficiency is significantly the Consumer division's ROI. Requirement 5. Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI. First, select the formula to calculate residual income (RI). 2. = RI Now calculate each division's RI. (Use a minus sign or parentheses to enter negative residual income.) Requirement 5. Calculate each division's RI. Interpret your results, and offer a recommendation for any division with negative RI. First, select the formula to calculate residual income (RI). - I D = RI Now calculate each division's RI. (Use a minus sign or parentheses to enter negative residual income.) The Rl for the Paint Stores division is $ The Rl for the Consumer division is $ meeting management's target rate of return. A division with a negative RI should consider Requirement 6. Describe some of the factors that management considers when setting its minimum target rate of return. require a higher target rate of return from a division operating in a riskier business environment. Management Management will need to decide different minimum target rates for different divisions. For example, management for the calculations and whether it should be net of Choose from any list or enter any number in the input fields and then continue to the next
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