? Data table e Residential Net Sales Revenue Operating Income Average Total Assets $ 580,000 $ 58,500 $ 180,000 1,120,000 156,000 390,000 Professional Management has a 25% target rate of return for each division. e total ass Print Done Zachs, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: prc Next question antial. The following divisional information was available for the past year: (Click the icon to view the information.) Read the requirements. X 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 you! 1 ROI Residential + 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 tumover ratio. Interpret your results. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? 2. 3. 4. % 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 Profit margin ratio Print Done Residential Professional The residential division is earning about $ of operating income on each dollar of net sales revenue whereas the professional division is earning about of operating income on each dollar of net sales revenue. The 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 tumover 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 turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) = Asset turnover ratio Residential - Professional 1 = II The residential division is generating about 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 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. ? ROI The ROI for the residential division is % Does your answer above agree with the basic Rol for the residential division you calculated in Requirement 1? The Rol for the professional division is % Does your answer above agree with the basic Rol for the professional division you calculated in Requirement 1
