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):

DATA -

Sales operating income Total assets

Residential $635,500 $63,550 $205,000

Professional $1031250 $165000 $375000

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.

Requirement 1. Calculate each division's ROI.

First enter the formula, then calculate each division's ROI using the expanded formula.

[] / [] = ROI % - Residential

[] / [] = ROI % - Professional

Requirement 2.Calculate each division's sales margin. Interpret your results.