Moto Corp Allows Its Divisions to Operate as Autonomous Units

question 108

Essay

Moto Corp allows its divisions to operate as autonomous units.The operating data for 2015 follow:
$$\begin{array} { | l | r | r | r | } \hline & \text { Plows } & \text { Tractors } & \text { Combines } \\\hline \text { Revenues } & \$ 2,250,000 & \$ 500,000 & \$ 4,800,000 \\\hline \text { Accounts receivable } & 800,000 & 152,500 & 1,435,000 \\\hline \text { Operating assets } & 1,000,000 & 400,000 & 1,750,000 \\\hline \text { Net operating income } & 220,000 & 60,000 & 480,000 \\\hline \text { Taxable income } & 165,000 & 90,000 & 385,000 \\\hline\end{array}$$ Required:
a.Compute the investment turnover for each division.
b.Compute the return on sales for each division.
c.Compute 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 income.

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Definitions:

Stereotype Performance

The act of behaving in a manner that is consistent with commonly held stereotypes about a particular group or identity.

Traditional Gender Roles

Traditional gender roles refer to the set of societal norms dictating what behaviors are generally considered appropriate, acceptable, and desirable based on one's perceived or actual sex or gender.

Unpaid Child Care

The provision of care to children without receiving financial compensation, often performed by family members.

Emotional Work

The effort put into managing and regulating one’s own emotions or those of others in various contexts, often to fulfill societal or occupational roles.