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Adrenaline Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inline skates. The company has found it beneficial to split operations into
Adrenaline Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inline 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.) Adrenaline's management has specified a 17% target rate of return. Calculate each division's profit margin ratio. Interpret your results. Begin by selecting the formula to calculate profit margin ratio, and then enter the amounts to calculate each division's profit margin ratio. Net sales revenue Average total assets Profit margin ratio Data table Net Sales Revenue Operating Income Average Total Assets ROI Snow Sports Non-snow Sports $ 5,800,000 $ 8,800,000 1,496,000 986,000 $ 4,800,000 7,000,000 20.5 % 21.4% Print Done
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