Speedy Sports Company makessnowboards, downhillskis, cross-countryskis, skateboards,surfboards, and inline skates. The company has found it beneficial to split operations into two divisions based on the climate required for thesport: Snow Sports andNon-snow Sports. The following divisional information is available for the pastyear:

Snow Sports

Net Sales Revenue 5,300,000

Operating Income 1,060,000

Average Total Assets 4,800,000

ROI 22.1%

Non-snow Sports

Net Sales Revenue 8,200,000

Operating Income 1,640,000

Average Total Assets 6,700,000

ROI 24.5%

Speedy's management has specified a 13% target rate of return. Calculate eachdivision's profit margin ratio. Interpret your results.

Begin by selecting the formula to calculate profit marginratio, and then enter the amounts to calculate eachdivision's profit margin ratio