Question

1Queton Heip Zd a naional manufacturer of lawn-mowing and snow-blowing ement segments its business acconding to oustomer type professional and nesidental The folowing divisional infomation ws valabe for the past year (Click the loon to view the informion) Read the reauiements Requirement 1, Calculate each ovion's RO Round all of your anwers to four decial places Begin by selectiing the formula to caloulate rurn an investment(ROn and then enter the anounts to calculate each 's ROL ner your anwer aspee ounded to two decmal pces Xo RO Residential Professional Requirement 2 Caluae each division's prot margin ratio Interpret your resuts Begin by selecting the formuls to caloulate profit margin natio, and then enter the amounts to calculate each dvision's proft margin Erach prot mrg e as a pecent rounded to o decmal Pro margn o Xxs Residental Professional ne The of openating income an each dolar of et ales rve whereas the paofessional division is eaming about f operating income on each dolar of net sales The esidential diviion is eaing out gher ot margin ratio helps to account for s higher Ro0 Requirement 3 Calculate each division's ass nover ato Inerpret your eutsound your an to w decl aes XXX) Asset Sumover ratio Choose from any et or enter any umber in the input fields and en continue to the next queston 7 6 3

Answer 1

Req 1		Residential	Professional
	Net Sales Revenue	$5,30,000	$10,60,000
	Operating Income	$62,560	$1,65,640
	Average Total Assets	$1,84,000	$4,04,000
	ROI =Net Operating Income / Average Total Assets
	ROI	34%	41%
Req 2		Residential	Professional
	Net Sales Revenue	$5,30,000	$10,60,000
	Operating Income	$62,560	$1,65,640
	Profit Margin ratio =Net operating income / Net Sales
	Profit Margin ratio	12%	16%
		Residential	Professional
Req 3	Net Sales Revenue	$5,30,000	$10,60,000
	Average Total Assets	$1,84,000	$4,04,000
	Asset Turnover ratio =Net sales / Average Operating Assets
	Asset Turnover ratio	2.88	2.62
Req 4		Residential	Professional
	ROI =Profit Margin*Asset Turnover	34%	41%
	As we can see that the answer in Req 1 and Req 4 are exactly same(Hence proved)