Please answer the below question ASAP for MBA 560 financial and managerial accounting.

Driver Sports 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:

		Operating	Total
	Sales	Income	Assets	Liabilities	ROI
Snow Sports . . . . . . . . .	$5,700,000	$1,057,500	$4,700,000	$470,000	22.5 %
Non-Snow Sports . . . . .	8,500,000	1,632,000	6,800,000	720,000	24.0 %

Driver's management has specified a target 17% rate of return. The company's weighted average cost of capital (WACC) is 12% and its effective tax rate is 33%.

Compute each division's RI. Interpret your results. Are your results consistent with each division's ROI?

First enter the formula, then calculate each divisions RI.

Snow

(

x

%

)

=

	..

Non-Snow

(

x

%

)

=

Interpret your results.

Both divisions have negative, positive or residual income?.

This means that the divisions are earning income at a rate that; exceeds, is equal to; or is lower than management's minimum expectations?.

Are your results consistent with each division's ROI?

This result is; consistent, or not consistent with the ROI calculations.