Question
Zoe, 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
Zoe, 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): (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate each division's ROI. First enter the formula, then calculate each division's ROI using the expanded formula. Residential Professional Interpret your results. Each division's ROI is ; however, the Requirement 2. Calculate each division's sales margin. Interpret your results. First enter the formula, then calculate each division's sales margin. = = ROI % % has an even higher ROI than the Residential Professional Interpret your results. = Sales margin % % 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.
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