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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. The following divisional information was available
Zooms, 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 EEB (Click the icon to view the information.) Read the requirements. Begin by selecting the formula to calculate return on investment Rol and then enter the amounts to calculate each division's ROI. Enter your answer as a percent rounded to two decimal places, x.xx%) ROI Residential 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 margin ratio. (Enter each profit margin ratio as a percent rounded to two decimal places, X.XX%.) Profit margin ratio Residential The residential division s earning about $ of operating income on each dollar o net sales revenue whereas the pro essional division is earning about $ of operating income on each dollar o net sales revenue. The higher profit margin ratio helps to account for its higher ROI. Data Table Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.xx.) Asset turnover ratio Net Sales Revenue Operating Income Average Total Assets 570,000 S 63.240 S 186,000 Professional 1,100,000 162,360 396.000 Choose from any list or enter any number in the input fields and then continue to the next question. Management has a 26% target rate of return for each division. The residential divisior is generating about Vof net sales revenue for each dollar of average total assels irvested. The professional division is generating about of net sales revenue for every dollar of average total assets. The s more efficient. Requirement 4. Use he expanded ROI formula to confimi your results from Requirement 1. What can you conclude? (Enter your answers as a percent rounded to two decimal places, X.Xxw.) First, select the expanded ROI forrmula 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 ROl for the professional division is Does your answer above agree with the basic ROI for the professional division you calculated in Requirement 1
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