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ROI, Margin, Turnover

Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division.

Frozen Foods Division:

	Year 1	Year 2
Sales	$37,550,000	$39,860,000
Operating income	1,614,650	1,713,980
Average operating assets	10,000,000	10,000,000

Canned Foods Division:

	Year 1	Year 2
Sales	$11,260,000	$11,719,100
Operating income	563,000	468,764
Average operating assets	5,000,000	5,000,000

Required:

Round the ROI and margin percentages to two decimal places (for example, enter the decimal .10555 as "10.56" percent). Round the turnover ratio to two decimal places.

1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division.

	Frozen Foods Division
	ROI	Margin	Turnover
Year 1	fill in the blank 1 %	fill in the blank 2 %	fill in the blank 3
Year 2	fill in the blank 4 %	fill in the blank 5 %	fill in the blank 6

2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division.

	Canned Foods Division
	ROI	Margin	Turnover
Year 1	fill in the blank 7 %	fill in the blank 8 %	fill in the blank 9
Year 2	fill in the blank 10 %	fill in the blank 11 %	fill in the blank 12

3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Frozen Foods Division.

The increase in the Frozen Foods Division ROI is due to the increase in turnover.The increase in the Frozen Foods Division ROI is due to the increase in margin.

Indicate the reason for change in ROI from Year 1 to Year 2 for the Canned Foods Division.

The decrease in the Canned Foods Division ROI is due to the decrease in turnover.The decrease in the Canned Foods Division ROI is due to the decrease in margin.

4. Which of the data analytic typesdescriptive, diagnostic, predictive or prescriptiveis Allard using in comparing Year 1 to Year 2 for the ratios?

Descriptive or DiagnosticDiagnostic or PredictivePredictive or PrescriptivePrescriptive or Descriptive

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