Benchmark, Home Hardware€™s manufacturing division 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:

Assume that management has a 25% target rate of return for each division. Also, assume that Benchmark€™s weighted average cost of capital is 15% and its effective tax rate is 30%.
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?

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Operating Current Income Total Assets Liabilities $ 635,500 63,500 $205,000 S 70,000 Professional....$1,031,250 $165,000 $375,000 $150,000 Residential