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XTreme Sports Company makos snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inine skates. The company has found it beneficial to split operations into two
XTreme Sports Company makos snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inine skates. The company has found it beneficial to split operations into two divisions based on the cimate required for the sport. Snow Sports and Non-enow Sports. The following divisional information is available for the past year (Click the icon to view the information) XTreme's management has speied a 13% target rate of retum. Compute each division's Ri. Interpret your resulls. Are your results consistent with each division's ROI? First, select the formula to caiculate residual income (R)) The Ri for the Soow Sports division is The Rl for the Nan-snow Sports division is Both divisions have. tesidual income. This means that the divisions are eaming income at a rate thot managemenfs minirnum expectations Are your retults comighem with each division's ROV? This rescit is With the ROI calculations ports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and inline ska ivisions based on the climate required for the sport. Snow Sports and Non-snow Sports. The following division the ico Data table (Click the icon to view the information.) XTreme's management has specified a 13% target rate of return. First, select the formula to calculate residual income (RI)
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