Moto Corp allows its divisions to operate as autonomous units.The operating data for 2015 follow:
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.
Definitions:
Residuals
Differences between observed values and the estimated values in a statistical model, reflecting the amount of unexplained variance in the model.
Fitted Values
Estimated values predicted by a regression model, based on the observed data.
Simple Linear Regression
A statistical method that models the linear relationship between a dependent variable and one independent variable by fitting a linear equation to observed data.
SAT Exam
A standardized test widely used for college admissions in the United States, assessing reading, writing and language, and mathematics skills.
Q6: If indirect-cost rates are calculated monthly,distortions might
Q23: If contribution margin decreases by $1 per
Q40: Sales total $400,000 when variable costs total
Q46: Incongruent decision making occurs when individuals and
Q47: The planned operating income is calculated by
Q66: Companies have an incentive to lower the
Q76: A company which favors the residual income
Q127: Briefly describe the conditions that should be
Q144: Ruben is a travel agent.He intends to
Q178: For each item below indicate the source