Answer the Following Questions Using the Information Below:
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question 85

Essay

Answer the following questions using the information below:
The top management at Watersport Company, a manufacturer of water sport equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
$\begin{array} { l r r r r } & \text { Jetski Division } & \text { Boat Division } & \text { Surfboard Division } \\\text { Sales } & \$ 7500000 & ( \mathrm { a } ) & \$ 1800000 \\\text { Net operating profit } & \$ 750000 & \$ 1080000 & \$ 450000 \\\text { Operating assets } & ( \mathrm { b } ) & ( \mathrm { c } ) & \$ 1500000 \\\text { Retum on investment } & 0.20 & 0.10 & ( \mathrm {~d} ) \\\text { Retum on sales } & ( \mathrm { e } ) & 0.12 & 0.25 \\\text { Investment turnover } & \text { (f) } & ( \mathrm { g } ) & 1.2\end{array}$
-Museum Corporation uses the investment centre concept for the museums that it manages.Select operating data for three of its museums for 2017 are as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Melbourne } } & { \text { Canberra } } & { \text { Brisbane } } \\\hline \text { Revenue } & \$ 600000 & \$ 750000 & \$ 900000 \\\hline \text { Operating assets } & 300000 & 250000 & 350000 \\\hline \text { Net operating profit } & 51000 & 56000 & 59000 \\\hline\end{array}$$
Required:
a.Compute the return on investment for each division.
b.Which museum manager is doing best based only on ROI? Why?
c.What other factors should be included when evaluating the managers?
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Definitions:

Gaze

The act of looking steadily and intently, especially in admiration, surprise, or thought.

Frame for Reference

A set of criteria or stated values in relation to which measurements or judgments can be made.

Moving

The action or process of changing place or position, often applied to the physical act of relocating from one place to another.

Table

A piece of furniture with a flat top and one or more legs, providing a level surface on which objects can be placed, or in the context of data, a structured arrangement of information organized in rows and columns.