Zulas, a national manufacturer oflawn-mowing andsnow-blowing equipment, segments its business according to customertype: professional and residential. The following divisional information was available for the pastyear:

Residential

Net Sales Revenue 570,000

Operating Income 60,450

Average Total Assets 186,000

Professional

Net Sales Revenue 1,090,000

Operating Income 150,400

Average Total Assets 376,000

Management has a 23% target rate of return for each division.

Requirements

1. Calculate eachdivision'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 eachdivision's ROI. (Enter your answer as a percent rounded to two decimalplaces, X.XX%)

2. Calculate eachdivision's profit margin ratio. Interpret your results.

3. Calculate eachdivision's asset turnover ratio. Interpret your results.

4. Use the expanded ROI formula to confirm your results from Requirement 1. What can youconclude?