Question
ROI, Margin, Turnover Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division. Furniture Division: Year 1 Year 2 Sales
ROI, Margin, Turnover
Jarriot, Inc., presented two years of data for its Furniture Division and its Houseware Division.
Furniture Division:
Year 1 | Year 2 | |
Sales | $35,000,000 | $37,500,000 |
Operating income | 1,400,000 | 1,500,000 |
Average operating assets | 10,000,000 | 10,000,000 |
Houseware Division:
Year 1 | Year 2 | |
Sales | $12,000,000 | $12,500,000 |
Operating income | 600,000 | 500,000 |
Average operating assets | 5,000,000 | 5,000,000 |
Required:
Enter the ROI and margin ratios as whole percentage values (for example, enter 10% as "10"). Round the turnover ratio to two decimal places.
1. Compute the ROI and the margin and turnover ratios for each year for the Furniture Division.
Furniture Division | ||||
ROI | Margin | Turnover | ||
Year 1 | % | % | ||
Year 2 | % | % |
2. Compute the ROI and the margin and turnover ratios for each year for the Houseware Division.
Houseware Division | |||
ROI | Margin | Turnover | |
Year 1 | % | % | |
Year 2 | % | % |
3. Explain the change in ROI from Year 1 to Year 2 for the Furniture Division.
Explain the change in ROI from Year 1 to Year 2 for the Housewares Division.
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