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1 Accel 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
1 Accel 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:
Accel 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: Data Table Sales ROI Operating Income Total Assets Current Liabilities rcent.) Snow Sports $ 5,000,000 $ 21.4% 900,000$ 4,200,000 $ 420,000 1,458,000 $ 2,700,000 $ Non-Snow Sports $ 8,100,000 $ 645,000 54.0% Accel's management has specified a target 14% rate of return Requirements Print Done 1. Compute each division's sales margin. Interpret your results 2. Compute each division's capital turnover (round to two decimal places) Interpret your results 3. Use your answers to Question 2 along with your answers to Question 1 to recalculate ROl using the expanded formula. Do your answers agree to the ROl calculations using the original formula and presented in the divisional information? Choose from any drop-down list and then click Check Answer 11 remaining parts
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