Zoes, 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:

Management has a 23% target rate of return for each division.
Requirements
1. Calculate each division€™s ROI. Round all of your answers to four decimal places.
2. Calculate each division€™s profit margin ratio. Interpret your results.
3. Calculate each division€™s asset turnover ratio. Interpret your results.
4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude?

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Net Sales Residential 540,000 Professional 070,000 Operating Income Average Total Assets 180,000 380,000 $58,500 152,000