Lindsey 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. View the data. Lindsey Sports Company's management has specified a 16% target rate of return. Compute each division's RI. Interpret your results. Are your results consistent with each division's ROI? 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 Net Sales Revenue Operating Income Average Total Assets Snow Sports $ 5,500,000 $ 935,000 $ Non-snow Sports 8,400,000 1,428,000 4,500,000 6,700,000 ROI 20.8 % 21.3% Print Done 02:56:10 Next