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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Operating Income Average Total Assets Net Sales ROI Snow Sports Non-snow Sports $5,100,000 $ 969,000 $4,100,000 23.6% 8,000,000 1,520,000 6,000,000 25.3%