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Extreme Sports Company makes snowboards, downhill skls, cross-country skis, skateboards, surfboards, and in-line skates. The company has found it beneficial to split operations into two
Extreme Sports Company makes snowboards, downhill skls, 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 loon to view the information.) Read the requirements. 1. Calculate each division's ROI. (Enter the ROI as a percent rounded to the nearest tenth of a percent, X.X%.) The ROI for the Snow Sports division is Extreme Sports Company makes snowboards, downhill skls, 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 loon to view the information.) Read the requirements. 1. Calculate each division's ROI. (Enter the ROI as a percent rounded to the nearest tenth of a percent, X.X%.) The ROI for the Snow Sports division is X Data table S Snow Sports Non-Snow Sports Sales Operating Income Total Assets Current Liabilities 5,500,000 $ 980,000 $ 4,000,000 $ 450,000 8,300,000 $ 1,268,500 $ 5,900,000 $ 700,000 S Extreme's management has specified a target 17% rate of retum. Print Done Extreme Sports Company makes snowboards, downhill skls, 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 loon to view the information.) Read the requirements. . 1. Calculate each division's ROI. (Enter the ROI as a percent rounded to the nearest tenth of a percent, X.X%.) The ROI for the Snow Sports division is - X Data X Requirements 1. Calculate each division's ROI. 2. Top management has extra funds 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? Extre Print Done
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