View the divisional information.

Requirements

Round all of your answers to four decimal places.

Calculate each division's ROI.

Calculate each division's profit margin. Interpret your results.

Calculate each division's asset turnover. Interpret your results.

Use the expanded ROI formula to confirm your results from Requirement $1.$ What can you conclude?

Requirement $1.$ Calculate each division's ROI.

First, enter the formula, and then calculate each division's ROI using the expanded formula. $($Enter your answers as a percent, rounded to four decimal places.$)$

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Requirement $2.$ Calculate each division's profit margin. Interpret your results.

First, enter the formula, and then calculate each division's profit margin. $($Enter your answers as a percent, rounded to four decimal places.$)$

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Interpret your results.

The Professional Division is earning about $$ on each dollar of sales, whereas the Residential Division is only earning about $$ on each dollar of sales. The $$ higher profit margin helps to account for its higher ROI.

Requirement $3.$ Calculate each division's asset turnover. Interpret your results.

First, enter the formula, and then calculate each division's asset turnover. $($Round your answers to two decimal places.$)$

Interpret your results.

The Professional Division is generating about $$ of sales for every dollar of assets. The Residential Division is generating about $$ of sales for each dollar of assets invested. The $$ is more efficient.

Requirement $4.$ Use the expanded ROI formula to confirm your results from Requirement $1.$ What can you conclude?

First, enter the expanded formula, and then calculate each division's ROI using the expanded formula. $($Round your final answers to four decimal places. Enter the answer as a percent.$)$

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