Refer to Sunburst Sports Data Set.

1. Calculate each division's ROI.

2. Top management has extra funds to invest. Which division will most likely receive those funds? Why?

3. Can you explain why one division's ROI is higher? How could management gain more insight?

Sunburst Sports Data Set.

Sunburst Sports Company makes snowboards, downhill skis, cross- country skis, skateboards, surfboards, and in- line skates. The company has found it beneficial to split operations into two divisions based on the climate required for the sport: Snow Sports and Non- Snow Sports. The following divisional information is available for the past year:

Sunburst's management has specified a target 13% rate of return.

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SalesOperating Income Snow Sports Non-Snow Sports $7.800,00 $5,000,000 950,000 1,482,000 Total Assets $4,900,000 $7,100,000$750,000 Current Liabilities $500,000 Sports $7,800,000 1