Refer to the information in Short Exercise S24-10.
Requirements
1. Compute each division's asset turnover ratio (round to two decimal places). Interpret your results.
2. Use your answers to Requirement 1, along with the profit margin ratio, to recalculate ROI using the expanded formula. Do your answers agree with the basic ROI in Short Exercise S24-10?
Refer in Short Exercise S24-10,
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%