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Epic 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
Epic 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. Enter the formula, then calculate each divisions ROI. (Enter the ROI as a percent rounded to the nearest tenth of a percent, X.X%.) Data Table - X ROI % Snow Sports Non-Snow Sports % 2. Top management has extra funds to invest. Which division will most likely receive those funds? Why? Sales Operating Income Snow Sports $ 5,800,000 $ 1,044,000 $ Non-Snow Sports $ 8,800,000 $ 1.584,000 $ Epic's management has specified a target 16% rate of return. Total Assets Current Liabilities 4,500,000 $ 450,000 6,400,000 $ 700,000 The will most likely receive those funds because it has 3. Can you explain why one division's ROI is higher? Print Done How could management gain more insight? Choose from any list or enter any number in the input fields and then continue to the next
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