00 Zims My Hardware S Manufacturing Division Of Lawn Mowing And Snow Removal Equirment Segments Its Business According 1 (19.57 KiB) Viewed 38 times
00 Zims My Hardware S Manufacturing Division Of Lawn Mowing And Snow Removal Equirment Segments Its Business According 2 (42.09 KiB) Viewed 38 times
00 Zims, My Hardware's manufacturing division of lawn mowing and snow removal equirment, 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 divisional information.) Requirements Round all of your answers to four decimal places 1. Calculate each division's ROI 2. Calculate each division's profit margin. Interpret your results 3. Calculate each division's asset turnover. Interpret your results 4. Use the expanded ROI formula to confirm your results from Requirement 1 What can you conclude?
Divisional information Operating Income Sales Total Assets Residential Professional 645,000 $ 70,950 $ 162,000 Current Liabilities 72.000 155,000 900,000 215,000 $ 360,000 Assume that management has a 27% target rate of return for each division. Also, assume that Zims's weighted average cost of capital is 13% and its effective tax rate is 28%
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