The Following Information Pertains to the Three Divisions of Merrymount

question 67

Multiple Choice

The following information pertains to the three divisions of Merrymount Company: $\begin{array}{lrrr}&\text { Division } X& \text { Division } Y& \text { Division } Z\\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 36,000 & \$ 25,000 & \$ 7,000 \\\text { Average operating assets } & 300,000 & ? & ? \\\text { Retum on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Turnover } & 1.5 & ? & ? \\\text { Target ROI } & 15 \% & 12 \% & 10 \%\end{array}$ What is the turnover for Division Z?

• A)1.500
• B)0.150
• C)6.670
• D)2.500

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Definitions:

Performance Effectiveness

An output measure of task or goal accomplishment.

Outputs

The final products, services, or results produced by a process, system, or organization.

Inputs

Resources, materials, or information that are used to produce goods or services in a process or system.

Complex Systems

Systems composed of interconnected parts that as a whole exhibit one or more properties not obvious from the properties of the individual parts.