Read the requirements Data Table .X 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. (En Average total assets ROI Operating income 61,100 Residential 188.000 32.50 % Professional 159.200 398,000 40.00% Residential Professional Net Sales Revenue Operating Income Average Total Assets $ 580.000 $ 61,100 $ 188,000 1,100,000 159,200 398,000 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 Management has a 24% target rate of return for each division. Operating income Net sales revenue V = Profit margin ratio 10.53 % Print Done Residential 61,100 580,000 Professional 159,200 1,100,000 14.47 % The residential division is earning about $ 0.11 of operating income on each dollar of net sales revenue whereas the professional division is earning about $ 0.14 of operating income on each dollar of net sales revenue. The professional division's higher profit margin ratio helps to account for its higher ROI. Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) Net sales revenue Average total assets = Asset turnover ratio Residential 580,000 188,000 3.09 1 1 1 1nnnnn 200 nnn : Choose from any list or enter any number in the input fields and then continue to the next question Zuds, 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: E: (Click the icon to view the information.) Read the requirements margin ratio helps to account for its higher ROI. Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) Net sales revenue Average total assets = Asset turnover ratio Residential 580,000 188.000 3.09 Professional 1,100,000 398,000 2.76 7 The residential division is generating about more efficient. 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 ROI The ROI for the residential division is % 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? Choose from any list or enter any number in the input fields and then continue to the next question. 2
