E$4$ Q$5$ Racer 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: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.

Information

Racer's management has specified a target $17\%$ rate of return.

View the information.

Compute each division's residual income. Interpret your results. Are your results consistent with each division's ROI?

First enter the formula, then calculate each divisions residual income.

Interpret your results.

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.