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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
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 (Click the icon to view the information.) Read the requirements 1. Enter the formula, then calculate each divisions ROI. (Enter the ROI as a percent rounded to the nearest tenth of a percent, X.X%) Operating incomeTotal assetsR ROI Snow Sports Data Table Sales Operating Incme Total Assets Current Liabilities Snow Sports 5,400,000 $ Non-Snow Sports $ 8,200,000 $ 946,000 $ 1,519,000 $ 4,300,000 S 6,200,000 $ 450,000 725,000 Accel's management has specified a target 17% rate of return. Requirements 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 ROl is higher? How could management gain more insight
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