Accel 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:
Accel’s management has specified a 15% target rate of return. Calculate each division’s profit margin ratio. Interpret your results.
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