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Calculate each? division profit margin ratio

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Question - Speedy 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:

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 each? division's profit margin ratio. Interpret your results.

Begin by selecting the formula to calculate profit margin? ratio, and then enter the amounts to calculate each? division's profit margin ratio.

Reference no: EM132969367

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