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Residential Assume the lollowing divsional b Zachs, a nabonal manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: Professional and available for the past year (in thousands of dollars) ElB (Cick the icon to view the information) Requirements 1. Calculate each division's ROI 2. Calculate each division's salles margin Interpret your results 3. Calculate each division's capital turnover. Interpret your resuts 4. Use the expanded ROI formula to confitm your resuilts from Requirement 1, What can you conclude? 5. Calculate each division's residual income (RI) Interpret your results Data Table Sales Operating IncomeTotal Asset Residenbal Professional 1.013,600152040 362000 Assume that management has a 24% target rate of return for each division $ 58500070.200195,000 S 362,000 Requirement 1. Calculate each division's ROI. First enter the formula, then calculate each division's ROIl using the expanded formula Print Done Professional Interpret your results Each division's ROl is Requirement 2. Calculate each division's sales margin Interpret your resuts First enter the formula, then calculate each division's sales margin however, the has an even higher ROI than the Residential Professional interpret your results The Professional Division is eaming abou on ach dlar of sales whereas the Residental Dwsion is only eamingout on each dollar of sales The margin helps to account for its higher RO

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