Zoes, a national manufacturer of lawn mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year: 3 (Click the icon to view the information.) i Data Table Read the 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 di Residential Net Sales Revenue Operating Income Average Total Assets $ 520,000 $ 60,300 $ 180,000 1,050,000 162,000 400,000 Professional ROI Residential Management has a 23% target rate of return for each division. Professional Print Done 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 pro X.XX%.) = Profit margin ratio 1. Calculate each division's ROI. Round all of your answers to four decimal places. Calculate each division's profit margin ratio. Interpret your results. 3. Calculate each division's asset turnover ratio. Interpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? Choose from any list or enter any number in the input fields and then continue to the next question. i Data Table Zoes, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer past year: (Click the icon to view the information.) Read the requirements. Residential Professional Net Sales Revenue Operating Income Average Total Assets $ 520,000 $ 60,300 $ 180,000 1,050,000 162,000 400,000 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 X.XX%.) Management has a 23% target rate of return for each division. = Profit margin ratio Print Print Done L Residential Professional of operating income on each dollar of net sales The residential division is earning about $ of operating income on each dollar of net sales revenue whereas the professional division is earning about $ revenue. The v 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.) 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 of net sales revenue for every dollar of The residential division is generating about average total assets. The of net sales revenue for each dollar of average total assets invested. The professional division is generating about Vis 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 ROI for the residential division you calculated in Requirement 1? The ROI for the professional division is No Does your answer above agree with the basic ROI for the professional division you calculated in Requirement 1: Yes, with possible slight rounding differences
