based on the climate required for the sport: Snow Sports and Non$-$snow Sports. The following divisional information is available for the past year:

View the data.

First, select the formula to calculate residual income $($RI$).$

Residual income $=$

The RI for the Snow Sports division $=$

The RI for the Non$-$snow Sports division $=$

Both divisions have residual income. This means that the divisions are earning income at a rate that management's minimum expectations.

Are your results consistent with each division's ROI?

This result is with the ROI calculations.

Data

$\backslash$table$[[,\backslash$table$[[$Net Sales$],[$Revenue$]],\backslash$table$[[$Operating$],[$Income$]],\backslash$table$[[$Average Total$],[$Assets$]],$ROI,$],[$Snow Sports,$$,5,500,000,$$$35,000,$$$4,500,000,20\mathrm{.}8\%$