10-8 numbers 1-3
For each of the three divisions, calculate sales margin, capital turnover, and return on investment (ROI) sunburst Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-line skates The company has found it beneficial to split has 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. 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? Refer to the Sunburst Sports Data Set. 1. Compute each division's margin. Interpret your results. 2. Compute each division's capital turnover (round to two decimal places), Interpret your result Use your answers to Question 2 along with your answers to Question 1 to recalculate ROI using the expanded formula. Do your answers agree with your ROI calculations in S10-7? Refer to the Sunburst Sports Data Set. Compute each division's residual income. interpret your result Are your results consistent with division's ROI? Pizarro's Manufacturing makes a variety of products, including stands Mixer pizarro's stand Mixer Division can use a component, K32, manufactured by Pizarro's Electrical Division. The market price for K32 is $23 per unit. The variable cost per unit for K32 in the Electrical Division is $8, while the absorption cost per $15. The divisions at pizzarro use a negotiated price strategy to set transfer prices between divisions. What is the lowest acceptable transfer price to the Electric division? What is the highest acceptable transfer price to that the Stand Mixer Division would pay? Explain your