Question

OUsOnr Zeldas, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to oustomer type: professional and residential. The following divisional information was available for the past year (Clck the loon to view the information) Read the eauirements Requirement 1. Caloulate each division's ROL. Round all of your answers to four decimal places Begin by selecting the formula to caloulate return on investment (RO), and then enter the amounts to calculate each division's ROL (Enter your answer as a percent rounded to two decimal places, X.XX%) ROI Residenial Professional 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 proft margin ratio, (Enter each prof margin ratio as a percent rounded to two decimal places, X.XX % )) Profit margin ratio Residenial Professional The residential division is eaming about $ of operating income on each dolar of net sales revenue wheneas the professional division is eaming about S of operating income on each dollar of net sales revenue. The higher profit margin ratio helps to account for its higher ROL Requirement 3. Calculate each division's asset tumover ratio. Interpret your results. (Round your answer to two decimal places, X.Xx) Asset turnover ratio Choose from any list or enter any number in the input fields and then continue to the next question. ese 7 8 Q R E

Answer 1

ans 1
	Operating Income/	Average Total assets	ROI
Residential	59400	180000	33.00	%
Professional	166000	400000	41.50	%
ans 2
	Operating Income/	Net sales Revenue	Profit margin
Residential	59400	580000	10.24	%
Professional	166000	1110000	14.95	%
Professional has higher profit
ans 3
	Net sales Revenue/	Average Total assets	Asset Turnover ratio
Residential	580000	180000	3.22
Professional	1110000	400000	2.78
3.22, 2.78
Residential is more efficient
ans 4
expanded ROI
Residential
Profit margin	Asset Turnoer ratio
10.24%	3.22	33.00
ROI	33.00
Yes it agrees
Professional
14.95%	2.78	41.50
ROI	41.50
Yes it agrees
If any doubt please comment