Below Are Three Relationships That Are Important to the Determination

question 68

Essay

Below are three relationships that are important to the determination of profitability.Assume assets were $22,900,000 on Dec.31,2008.
REQUIRED:
Compute the operating leverage,financial structure leverage,and ROCE (rounded to two places).Then use these relationships to analyze how the profitability of X-Mart changed over the three year period below.What does the company need to do to reverse this trend? What are the risks of your strategy?

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Definitions:

Informal Groups

Unofficial and emerge from relationships and shared interests among members.

Formal Groups

Officially recognised and supported by the organisation.

Group Dynamics

The psychological processes involving interactions, behaviors, attitudes, and roles that occur within a group setting.

Synergy

The creation of a whole greater than the sum of its individual parts.