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Speedy Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-Hine skates. The company has found it beneficial to split operations into two
Speedy Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-Hine 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 inforrnation is available for the pest year. (Click the icon to view the information.) Read the requirements. 1. Compute each division's sales margin. Interpret your results. First enter the formula, then calculate each divisions sales margin. (Enter the sales margin as a percent rounded to the nearest whole percent) Sales margirn 6 Requirements Data Table 1. Compute each division's sales margin. Interpret your results 2. Compute each division's capital turriover (round to two decimial places). Sales Operating Income Total Assets Current Liabilities ROI $5,300,000 S Snow Sports Non-Snow Sports $ 8,200,000 S 1,007,000 $ 1,558,000 $ 1,600,000 S 410,000 21.9% 35,000 Interpret your resuls. Use your answers to Question 2 along with your answers to Question 1 to recalculate ROl calculations using the original formula and presented in the divisional inforrnation? 3. 3,600,000 $ 433% ROl using the expanded formula. D o your answers agree to the Speedy's management has specified a target 15% rate of return. Print Done Print Done
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