Question
Karate Kid 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
Karate Kid 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.
Snow Sports:
sales $5,500,000 | operating income: $1,100,000 | total assets: $4,400,000 | current liabilities: $410,000
Non-Snow Sports
sales: $8,400,000 | operating income $1,680,000 | total assets: $6,500,000 | current liabilities: $710,000
Questions: The Snow Sports division's sales margin is ______%
The Non-Snow Sports division's sales margin ________%
Based on the division's sales margins, we know that the sales margins (were not the reason / were the reason) the divisions had different ROI's
The Snow Sports division's capital turnover is _______ times
The Non-Snow Sports division's capital turnover is ________ times
Based on the division's capital turnover rates, we know that the rates (were not the reason / were the reason) the divisions had different ROI's
The Snow Sports division's ROI using the expanded formula is _______%
The Non-Sports divisions ROI using the expanded formula is __________%
Do you're answers agree with the basic ROI presented in the divisional information? Yes or No
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