Zims, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its businessraccording to customer type: Professional and Residential. Assume the following divisional information was available for the past year (in thousands of dollars): (Click the icon to view the information.) Read the requirements. Data table Assume that management has a 23% target rate of return for each division. Requirement 1. Calculate each division's ROI. First enter the formula, then calculate each division's ROI using the expanded formula. Interpret your results. Each division's ROI is ; however, the has an even higher ROI than the Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin. 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 sales margin helps to account for its higher ROI. Requirement 3. Calculate each division's capital turnover. Interpret your results. First enter the formula, then calculate each division's capital turnover. (Round your answer to two decimal places.) The Professional Division is generating about of sales for every dollar of assets. The Residential Division is generating about 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, then calculate each division's ROI using the expanded formula. Confirm your results from Requirement 1. Does your answer for the residential ROI agree with the basic ROI? Does your answer for the professional ROI agree with the basic ROI? What can you conclude? What can you conclude? Even though the efficlency (as measured by the capital turnover) is higher than that of the the profitability (as measured by the sales margin) is so much higher that it causes its ROI to be much higher than the Requirement 5. Calculate each division's residual income (RI). Interpret your resuits. First enter the formula, then calculate each divisions RI. Interpret your results. exceeding management's expectations. Zims, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its businessraccording to customer type: Professional and Residential. Assume the following divisional information was available for the past year (in thousands of dollars): (Click the icon to view the information.) Read the requirements. Data table Assume that management has a 23% target rate of return for each division. Requirement 1. Calculate each division's ROI. First enter the formula, then calculate each division's ROI using the expanded formula. Interpret your results. Each division's ROI is ; however, the has an even higher ROI than the Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin. 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 sales margin helps to account for its higher ROI. Requirement 3. Calculate each division's capital turnover. Interpret your results. First enter the formula, then calculate each division's capital turnover. (Round your answer to two decimal places.) The Professional Division is generating about of sales for every dollar of assets. The Residential Division is generating about 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, then calculate each division's ROI using the expanded formula. Confirm your results from Requirement 1. Does your answer for the residential ROI agree with the basic ROI? Does your answer for the professional ROI agree with the basic ROI? What can you conclude? What can you conclude? Even though the efficlency (as measured by the capital turnover) is higher than that of the the profitability (as measured by the sales margin) is so much higher that it causes its ROI to be much higher than the Requirement 5. Calculate each division's residual income (RI). Interpret your resuits. First enter the formula, then calculate each divisions RI. Interpret your results. exceeding management's expectations
