Question

Refer to the Sunburst Sports Data Set. Compute each division’s residual income. Interpret your results. Are your results consistent with each division’s ROI?
Sunburst Sports Data Set.
Sunburst Sports Company makes snowboards, downhill skis, cross- country skis, skateboards, surfboards, and in- line 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:


Sunburst’s management has specified a target 13% rate ofreturn.


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  • CreatedAugust 27, 2014
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