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K Speedy Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inline skates. The company has found it beneficial to split operations
K Speedy Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inline 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.) Speedy's management has specified a 15% target rate of retur. Compute each division's RI. Interpret your results. Are your results consistent with each division's ROI? Data table Snow Sports Non-snow Sports X RI Net Sales Revenue Operating Income Average Total Assets ROI $ 5,600,000 $ 1,008,000 $ 4,100,000 24.6% 8,500,000 1,530,000 6,100,000 25.1% a rate that management's minimum Print Done
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