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Adrenaline 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
Adrenaline 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. Compute each division's sales margin. Interpret your results. First enter the formula, then calculate each divisions sales margin. (Enter the sales margin as a percent rounded to the nearest whole percent.) Sales margin 1 Snow Sports Non-Snow Sports Interpret your results. Based on the divisions' sales margins, we know that the sales margins the divisions had different ROI's. 2. Compute each division's capital turnover (round to two decimal places). Interpret your results. First enter the formula, then calculate each divisions capital turnover. (Round to two decimal places.) 1 Capital turnover times Snow Sports Non-Snow Sports 1 times Interpret your results. Based on the divisions' capital turnover rates, we know that the rates the divisions had different ROI's. 3. Use your answers to Question 2 along with your answers to Question 1 to recalculate ROI using the expanded formula. Do your answers agree to the ROI calculations using the original formula and presented in the divisional information? First enter the expanded formula then calculate each divisions ROI. (Enter the rate as a percentage rounded to the nearest tenth of a percent, X.X%) X ROI % Snow Sports Non-Snow Sports % X % Do your answers agree with the basic ROI presented in the divisional information? Choose from any list or enter any number in the input fields and then continue to the next question sales lo lle sales calesu i X Data Table 1 Snow Sports Sales Operating Income Total Assets Current Liabilities $ 5,500,000 $ 1,045,000 $ 4,500,000 $ 410,000 $ 8,400,000 $ 1,596,000 $ 3,000,000 $ 635,000 Non-Snow Sports Racer's management has specified a target 16% rate of return. Print Done
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