Perth Electronics Company Allows Its Divisions to Operate as Autonomous

question 3

Essay

Perth Electronics Company allows its divisions to operate as autonomous units.The operating data for 2017 follow:
$$\begin{array} { | l | r | r | r | } \hline & { \text { TVs } } & \text { Photography } & { \text { Computers } } \\\hline \text { Revenues } & \$ 4500000 & \$ 1000000 & \$ 9600000 \\\hline \text { Accounts receivable } & 1600000 & 305000 & 2870000 \\\hline \text { Operating assets } & 2000000 & 800000 & 3500000 \\\hline \text { Net operating profit } & 440000 & 120000 & 960000 \\\hline \text { Taxable income } & 330000 & 180000 & 770000 \\\hline\end{array}$$
Required:
a.Calculate the investment turnover for each division.
b.Calculate the return on sales for each division.
c.Calculate the return on investment for each division.
d.Which division manager is doing best? Why?
e.What other factors should be included when evaluating the managers?
For parts (b)and (c)income is defined as operating profit.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Storage Decay

The theory that memories weaken over time if they are not accessed or used, leading to their eventual fading and loss.

Encoding Failure

A situation where information does not get stored in memory, often leading to an inability to recall or recognize the information later.

Anterograde Amnesia

A condition in which an individual is unable to form new memories following the onset of amnesia.

Massed Practice

A learning strategy that involves intensive, continuous sessions of practice or study without rest intervals.