ROI, Margin, Turnover

Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division.

Frozen Foods Division:

Year 1Year 2Sales$35,230,000$37,640,000Operating income1,444,4301,543,240Average operating assets10,000,00010,000,000

Canned Foods Division:

Year 1Year 2Sales$12,830,000$13,333,400Operating income667,160560,003Average operating assets5,000,0005,000,000

Required:

Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places.

1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division.

Frozen Foods Division ROIMarginTurnover Year 1fill in the blank %fill in the blank %fill in the blank Year 2fill in the blank %fill in the blank %fill in the blank

2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division.

Canned Foods Division ROIMarginTurnover Year 1fill in the blank %fill in the blank %fill in the blank Year 2fill in the blank %fill in the blank %fill in the blank

3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Frozen Foods Division.

The increase in the Frozen Foods Division ROI is due to the increase in turnover.

The increase in the Frozen Foods Division ROI is due to the increase in margin.

Indicate the reason for change in ROI from Year 1 to Year 2 for the Canned Foods Division.

The decrease in the Canned Foods Division ROI is due to the decrease in turnover.

The decrease in the Canned Foods Division ROI is due to the decrease in margin.

4. Which of the data analytic typesdescriptive, diagnostic, predictive or prescriptiveis Allard using in comparing Year 1 to Year 2 for the ratios?

Descriptive Diagnostic

Diagnostic or Predictive

Predictive or Prescriptive

Prescriptive or Descriptive