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Zolums, 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 EEB (Click the icon to view the information.) Read the requirements Requirement 1. Calculate each division's ROl. 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%) ROI Residential 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 profit margin ratio. (Enter each profit margin ratio as a percent rounded to two decimal places, XXX%) -Profit margin ratio Residential Professional The residential division is earning about $of operating income on each dollar of net sales revenue whereas the professional division is earning about $1 I of operating income on each dollar of net sales revenue. The higher profit margin ratio helps to account for its higher ROI Requirement 3. Calculate each division's asset turnover ratio. Interpret your results. (Round your answer to two decimal places, X.XX.) Asset turnover ratio Residential Professional The residential division is generating about assets invested. The professional division is generating about of net sales revenue for every dollar of average total assets. The of net sales revenue for each dollar of average total is more efficient. Requirement 4. Use the expanded ROl formula to confirm your results from Requirement 1. What can you conclude? (Enter your answers as a percent rounded to two decimal places, X.XX%.) First, select the expanded ROI formula. ROI The ROI for the residential division is Does your answer above agree with the basic ROl for the residential division you calculated in Requirement 1? The ROl for the professional division is Does your answer above agree with the basic ROI for the professional division you calculated in Requirement 1? Net Sales Revenue Operating Income Average Total Assets Residential Professional Management has a 23% target rate of return for each division. 61,100 $ 155,200 540,000 $ 188,000 1,040,000 388,000

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