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The Division is more profitable on each dollar of sales. First enter the formula, then calculate the capital turnover for each division. (Round to two
The Division is more profitable on each dollar of sales. First enter the formula, then calculate the capital turnover for each division. (Round to two decimal places.) The Division is more efficient in generating sales with its assets. Requirement 4. Use the expanded ROl formula to confirm your results from Requirement 1. Interpret your results. First enter the expanded ROI formula, then calculate the ROI for each division. (Enter the ROI as a percent rounded to the nearest hundredth of a percentage, X.XX\%.) The Consumer Division's promebily on each dolar of sales is I than the Paint Storas Divisioris profmabily. However, the Paint Store Division's efticincy is significantly efficlency. These rusults cause the Paim Scoest Division's ROl to be the Corsumer Olvision's ROI. Requirement 5. Caloulate each division's fi. Interpeet your resuits and offer recommendatons for any disision with negative Ra. First emtor the formula. then cakiculate the Rl for aach division. (Einter the amount in thousands. Use barentheses or a minus sian for nogative residual incomos) Interpre: your resuls and offer recommentitions for any division with negutive R. meetng manspements target rate of retum. The should work on improving its , Improving this may help the dwision achieve postive reskeua neome. Requirement 6. Tolal assat data were provided in this problem. If you were io gather this irlomalion from an armual repert, how would you masure total asses? Deact te your measurement choicas and serme of the peos and cons of those choices. Most comparies use the asset balance since the income ued in the ROl caloulation is eamed over the year. Marugement must aleo decide whether they wish to ule the grees book value of atsets or the not bock value of assats The book value is often uned because it k easlly pullod from the talance chacet. However, ROI using that value wil artifcially rise over bime due to Requirement 7. Describe some of the tactors that management considers when setting iss minimum target rate of recurn. Assume that management has specified a 20% target rate of return. Read the requirements. Data table The company is segmented into five divisions: Paint Stores (branded ounded to the retail location), Consumer (paint sold through stores such as Home
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