Evaluation of Responsibility Centers

question 79

Essay

Evaluation of responsibility centers
Shown below are the current-year data for two investment centers of Chelsea Trading,Inc.The total assets utilized by each of these investment centers during the year amount to $1,500,000:
(a)Compute the following measures for each investment center: (b)Assume that a $3,000 monthly expenditure for advertising could increase the monthly sales of either investment center by $20,000.Which center should the company advertise to receive the maximum benefit from its advertising expenditure? Center ________.Explain your reasoning:

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Definitions:

Tatanua Masks

Ceremonial masks from New Ireland, Papua New Guinea, used in rituals and known for their vibrant colors and elaborate designs.

Malanggan Mortuary

Refers to the intricate carvings and ceremonies associated with the mortuary practices of the Malanggan culture in New Ireland, Papua New Guinea.

Storyboards

Visual representations in the form of illustrations or images displayed in sequence for the purpose of pre-visualizing a motion picture, animation, motion graphic, or interactive media sequence.

Ceremonial Houses

Structures used for ceremonial purposes, often within indigenous cultures, that play a central role in community rituals and ceremonies.