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Please use same format. thank you so much! Thats what im paying chegg for...? Data table Operating Income Residential $ 420,000 $ 58,800 $ Professional
Please use same format. thank you so much!
Thats what im paying chegg for...?
Data table Operating Income Residential $ 420,000 $ 58,800 $ Professional $ 608,000 S 152,000 $ Assume that management has a 24% target rate of return for each division. SA Sales Total Assets 210,000 380,000 I X Zuds, 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. RECEI Requirement 1. Calculate each division's ROI. First enter the formula, then calculate each division's ROI using the expanded formula. ROI Residential % Professional % 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 sa es margin. Sales margin Residential: Professional Interpret your results. HE % The Professional Division is earning about on each dollar of sales. The 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 is more officient of sales for each dollar of assets invested. The 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 ROI Residential % X Professional X on each dollar of sales whereas the Residential Division is only earning about higher sales margin helps to account for its higher ROI. % % 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 the 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. Res. x Prof. Interpret your results. exceeding management's expectations efficiency (as measured by the capital turnover) is higher than that of the profitability (as measured by the sales margin) is so much higher that it causes its ROI RI %) = % Step by Step Solution
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