Refer to the information in Short Exercise S24- 7.

Requirements

1. Compute each division's asset turnover ratio (round to two decimal places). Interpret your results.

2. Use your answers to Requirement 1, along with the profit margin ratio, to recalculate ROI using the expanded formula. Do your answers agree with the basic ROI in Short Exercise S24-7?

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Operating Average Net Sales $5,500,000 8,400,000 Income Total Assets ROI $ 935,000 1,428,000 $4,500,000 Snow Sports Non-snow Sports 20.8% 6,700,000 21.3%