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sions residual income. Data Table ROI 19.5% 21.0% Sales Operating Income Total Assets Current Liabilities Snow Sports $ 5,300,000 $ 954.000 5 4,900,000 $ 460,000 Non-Snow Sports $ 8,300,000 $ 1,494,000 $ 7,100,000 $ 710,000 Accel's management has specified a target 14% rate of return Print Done Accel Sports Company makes snowboards, downhill skis, cross-country skis, skateboards, surfboards, and in-line skates the sport Snow Sports and Non-Snow Sports. The following divisional information is available for the past year: (Click the icon to view the information.) Compute each division's residual income. Interpret your results. Are your results consistent with each division's ROI? First enter the formula, then calculate each divisions residual income ) = Residual inco %) = Snow X Non-Snow Interpret your results Both divisions have residual income. This means that the divisions are earning income at a rate that Are your results consistent with each division's ROI? This result is with the ROI calculations. cateboards, surfboards, and in-line skates. The company has found it beneficial to split operations into two divisions based on the climate required for on is available for the past year. consistent with each division's ROI? Residual income %) = %) = n. eaming income at a rate that management's minimum expectations

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