Lindsey Sports Company makes snowboards, downhill skis, cross$-$country skis, skateboards, surtboards, and based on the cllmate required for the sport Snow Sports and Non$-$snow Sports. The following divisional information is avaliable for the past year:

View the data.

First, select the formula to calculate residual income $($RI$).$

Residual income $=$

The RI for the Snow Sports division $=$

The RI for the Non$-$snow Sports division $=$

Both divisions have residual income. This means that the divisions are earning income at a rate that management's minimum expectations.

Are your results consistent with each division's ROI?

This result is with the ROI calculations.

Data

$\backslash$table$[[,,\backslash$table$[[$Net Sales$],[$Revenue$]],\backslash$table$[[$Operating$],[$Income$]],\backslash$table$[[$Average Total$],[$Assets$]],$ROI$],[$Snow Sports,$$,5,500,000$$$,935,000,4,500,000,20\mathrm{.}8\%$