View the divisional information.
Requirements
Round all of your answers to four decimal places.
Calculate each division's ROI.
Calculate each division's profit margin. Interpret your results.
Calculate each division's asset turnover. Interpret your results.
Use the expanded ROI formula to confirm your results from Requirement What can you conclude?
Requirement Calculate each division's ROI.
First, enter the formula, and then calculate each division's ROI using the expanded formula. Enter your answers as a percent, rounded to four decimal places.
Requirement Calculate each division's profit margin. Interpret your results.
First, enter the formula, and then calculate each division's profit margin. Enter your answers as a percent, rounded to four decimal places.
tableProfit marginResidentialProfessional
Interpret your results.
The Professional Division is earning about on each dollar of sales, whereas the Residential Division is only earning about on each dollar of sales. The higher profit margin helps to account for its higher ROI.
Requirement Calculate each division's asset turnover. Interpret your results.
First, enter the formula, and then calculate each division's asset turnover. Round your answers to two decimal places.
Interpret your results.
The Professional Division is generating about of sales for every dollar of assets. The Residential Division is generating about of sales for each dollar of assets invested. The is more efficient.
Requirement Use the expanded ROI formula to confirm your results from Requirement What can you conclude?
First, enter the expanded formula, and then calculate each division's ROI using the expanded formula. Round your final answers to four decimal places. Enter the answer as a percent.
tableROI