IronZee Sports makes road bikes, mountain bikes, triathlon bikes, snow shoes, downhill skis, and cross country skis. The company split its operations into two divisions: summer sports and winter sports. The information for the past year is as follows: Net Sales Operating Income Average Total Assets Winter Sports $5,235,700 $988,900 $4,125,100 Summer Sports $8,059,700 $1,556,000 $6,079,700 IronZee Sports management has targeted a 12% rate of return. (Round your answers to two decimal places when needed and use rounded answers for all future calculations) 1. Calculate each divisions' profit margin ratio. Operating Income Net Sales - Profit Margin Ratio (%) Division Winter Sports Summer Sports 1 2. Compute each divisions' assets turnover ratio. Net Sales Average Total Assets = Asset Turnover Ratio Division Winter Sports Summer Sports 11 3. Calculate the ROI using the above figures. Profit Margin Ratio (%) X Asset Turnover Ratio = ROI (%) Division Winter Sports Summer Sports = = 4. Compute each divisions' RI. Division Operating Income (Target rate of return (%) X Average total Assets) = RI X 11 Winter Sports Summer Sports