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Driver 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
Driver 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 dimate 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. CHI 1. Calculate each division's ROI. (Enter the ROI as a percent rounded to the nearest tenth of a percent, X.X%.) The Rol for the Snow Sports division is %. Requirements X Data table Sales Operating Income $ 5,300,000 $ 1,010,500 S $ 8,500,000 S 1,312,000 S Snow Sports 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 ROI is higher? How could management gain more Insight? Total Assets Current Liabilities 4,300,000 $ 470,000 8,400,000 $ 695,000 Non-Snow Sports Driver's management has specified a target 15% rate of return. Print Done Print Done
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