ExtremeSports Company makessnowboards, downhillskis, cross-countryskis, skateboards,surfboards, andin-line skates. The company has found it beneficial to split operations into two divisions based on the climate required for thesport: Snow Sports andNon-Snow Sports. The following divisional information is available for the pastyear:

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. Based on the divisions' profit margins, we know that the sales profits the divisions had different ROIs.X Divisional information Operating Total Current Sales Income Assets Liabilities ROI Snow Sports ...... 5,300,000 $ 989,000 $ 4,600,000 $ 450,000 21.5% Non-Snow Sports .... 8,100,000 1,541,000 6,700,000 675,000 23.0 % Extreme Sports management has specified a target 17% rate of return. The company's weighted average cost of capital (WACC) is 11%, and its effective tax rate is 35%