BlueHill 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:

Compute each division's profit margin. Interpret your results.

- Divisional information Operating Total Current Sales Income Assets Liabilities ROI 800,000 $ 4,000,000 $ 350,000 20.0 % Snow Sports $ 5,000,000 $ Non-Snow Sports 9,000,000 1,440,000 6,000,000 600,000 24.0 % BlueHill management has specified a target 15% rate of return. The company's weighted average cost of capital (WACC) is 12%, and its effective tax rate is 35%. Print Done First, enter the formula, and then calculate each divisions profit margin. (Enter the sales margin as a percent rounded to the nearest whole percent.) Profit = margin Snow Sports = % Non-Snow Sports = % Interpret your results. the Based on the divisions' profit margins, we know that the sales profits divisions had different ROls