XTreme 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:

XTreme's management has specified a 13% target rate of return. Calculate each division's profit margin ratio. Interpret your results?

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Operating Income Net Sales Revenue Average Total ROI Assets Snow Sports Non-snow Sports $ 990,000 $ 5,500,000 $ 4,100,000 24.1% 8,500,000 1,530,000 6,100,000 25.1%