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Zulas, a national manufacturer of lawn - mowing and snow - blowing equipment, segments its business according to customer type: professional and residential. The following
Zulas, a national manufacturer of lawnmowing and snowblowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year:
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Requirement 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 division's ROI. Enter your answer as a percent rounded to two decimal places, XXX
Requirement 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, XX
The residential division is earning about $
of operating income on each dollar of net sales revenue whereas the professional division is earning about $
of operating income on each dollar of net sales revenue. The
higher profit margin ratio helps to account for its higher ROI
Requirement Calculate each division's asset turnover ratio. Interpret your results. Round your answer to two decimal places, XXX
The residential division is generating about
of net sales revenue for each dollar of average total assets invested. The professional division is generating about
of net sales revenue for every dollar of average total assets. The
Data table
Requirement Use the expanded ROI formula to confirm your results from Requirement What can you conclude? Enter your answers as a percent rounded to two decimal places, XXX
First, select the expanded ROI formula.
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