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Zooms, 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
Zooms, 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. Operating income Total assets = ROI Residential % Enter any number in the edit fields and then click Check Answer. ? 19 parts remaining Clear All Check Answer B of 1 pt 3 of 5 (2 complete) HW Score: 10 20A Data Table Istomer type: Professional and tional division e icon Sales Operating Income Total Assets quireme Residential $ 450,000 $ 54,000 $ 180,000 Professional $ 740,000 $ 133,200 $ 370,000 nt 1. Cal Assume that management has a 25% target rate of return for each division. e formy Print Done - X Requirements 1. Calculate each division's ROI. 2. Calculate each division's sales margin. Interpret your results. 3. Calculate each division's capital turnover. Interpret your results. 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? 5. Calculate each division's residual income (RI). Interpret your results. Print Done umber in
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