Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zachs, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: Professional and Residential. Assume the following divisional information was
Zachs, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: Professional and Residential. Assume the following divisional information was available for the past year (in thousands of dollars): EEE (Click the icon to view the information.) Read the requirements. Data Table Requirement 1. Calculate each division's ROI. Sales Operating Income tal Assets 1,314,400 $ $1,395,000 S $212,000 $ 372,000 First enter the formula, then calculate each division's ROI using the expanded formula. 65,720 ROI S167.400 Assume that management has a 25% target rate of return for each division. Print Done Interpret your results. Each division's ROI is ? : however, the has an even higher ROl than the Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin. Sales margin Interpret your results. ?| on each dollar of sales whereas the Residential Division is only eaming about | ?on each dollar of sales. The V higher sales margin helps to account for its higher The Professional Division is earning about | ROI
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started