Question

Please help with requirement 2 net sales revenue is 530,000

Zorahs, 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: (Click the icon to view the information.) Read the requirements. Requirement 1. 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, X.XX%) Operating income Average total assets ROI Residential 59,150 182,000 Professional $ 160,800 $ 402,000 32.5 % 40 % 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%) Operating income Net sales revenue Profit margin ratio Residential %

Answer 1

Profit margin ratio

	Operating income	/	Net Sales revenue	=	Profit margin ratio
Residential	59150	/	530000	=	11.16%