Refer to the Epic Sports Data Set. Compute each division's residual income. Interpret your results. Are your results consistent with each division's ROI?
Epic 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:

Epic's management has specified a target 16% rate of return.

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Operating Income Current Liabilities Total Assets Sales Snow Sports Non-Snow Sports $5,800,000 $1,044,000 $4,500,000 $450,000 $8,800,000 $1,584,000 $6,400,000 $700,000