Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places.
Requirement 2. Calculate each division's profit margin ratio. Interpret your results.
Requirement 3.Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.)
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%.)
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: (Click the icon to view the information.) 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 your answer as a percent rounded to two decimal places, X.XX%) 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 each profit margin ratio as a percent rounded to two decimal places, X.XX%.) = Profit margin ratio Residential Professional of operating income on each dollar of net sales revenue. The 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. Requirement 3. Calculate each division's asset tumover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) = Asset turnover ratio Choose from any list or enter any number in the input fields and then continue to the next question A Requirements 1. Calculate each division's ROI. Round all of your answers to four decimal places. 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? 4. Print Done Residential Professional Net Sales Revenue Operating Income Average Total Assets $ 530,000 $ 63,360 $ 192,000 1,030,000 162,680 392,000 Management has a 24% target rate of return for each division. Print Done Zuds, a national manufacturer of lawn mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional infomation was available for the past year: (Click the icon to view the information.) Read the requirements Requirement 3. Calculate each division's asset turnover ratio. Interpret your reaults. (Round your answer to two decimal places, X.XX.) = Asset turnover ratio Residential Professional of net sales revenue for every dollar of average The residential division is generating about of net sales revenue for each dollar of average total assets invested. The professional division is generating about total assets. The is more efficient 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. | x | | = ROI The ROI for the residential division is L % Does your answer above agree with the basic ROI for the residential division you calculated in Recuirement 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 Save for Later
