mmoran4616 mmoran4616

08-05-2024
Business

Answered

Zooms, 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:

Net Sales Revenue Operating Income Average Total Assets
Residential $510,000 $63,700 $196,000
Professional 1,010,000 162,400 406,000
Management has a 24% target rate of return for each division.

Calculate each division's ROI.

Answer :

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