You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Anal A B Sales P100,000.00 P500,000.00 Operating Expenses 30,000.00 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: 1. Compute the ROI of each segment and 2. Compute the components of ROL of each segment
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- A-1. Evaluate the performance of the two divisions assuming BMI users return on investment (ROI). A-2. Which division had the better performance?Classify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Number of improved products B. Time from packaging to delivery or display C. Production costs D. Number of customer suggestions E. Sales mix revenues F. Number of repeat customersPlease see picture for the full problem and table. a-1. Evaluate the performance of the two divisions assuming BMI uses return on investment (ROI). (Round your final answers to nearest whole percentage value.)
- Comparison of Performance Using Return on Investment (ROI) Comparative data on three companies in the same service industry are given below: Required: 1. What advantages are there to breaking down the ROI computation into two separate elements, margin and turnover? 2. Fill in the missing information above, and comment on the relative performance of the three companies in as much detail as the data permit. MakeExercise 10-12 Evaluating New Investments Using Return on Investment (ROI) and Residual Income (LO10-1, LO10-2] Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A $ 6,300,000 $ 1,260,000 340,200 Division B $ 10,300,000 $ 5,150,000 968,200 18.80% Division C $ 9,400,000 $ 1,880,000 24 Sales Average operating assets Net operating income Minimum required rate of return 2$ 249,100 20.00% 17.00% Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 20% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or…Return on investment (ROI) could be calculated using which of the following formulas? W Multiple Choice O O X Margin * (Net operating income + Sales) O X O Margin x (Average operating assets + Sales) X Margin * (Sales - Net operating income) Type here to search X Margin × (Sales - Average operating assets) < Prev 2 of 10
- What would be a meaningful KPI for a marketing organization? O Average daily attendance (ADA) O Sales qualified leads (SQL) O Return on investment (ROI) O Operational cash flow (OCF)Classify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Number of new products introducedClassify the performance measures below into the most likely balanced scorecard perspective towhich it relates: customer (C), internal processes (P), innovation and growth (I), or financial (F). Sales returns
- Select all of the formulas below that will correctly get you the Return on Investment. Operating Income / Total Assets Sales Margin * Capital Turnover (Operating Income / Sales Revenue) (Sales Revenue / Total Assets) Operating Income - (Target Rate of Return * Total Assets) -DO Which of the following promotes goal congruence (aligned goals between segment managers and top management)? Return on Investment as a performance evaluation measure Residual Income as a performance evaluation measureA. What are the four performance perspectives used in the balanced scorecard? B. For each performance perspective above, list at least two strategic objectives. 2. A balanced scorecard has the following performance metrics: Sales increase by region Sales order pipeline Market share Salesperson training hours Number of shipping errors Number of new customers New product development expenditures Relative to the metric “increase sales”, which of these performance metrics are leading and which are lagging indicators?ROI, comparisons of three companies. (CMA, adapted) Return on investment (ROI) is often ex- pressed as follows: Income Income Revenues Investment Revenues ^ Investment 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks for the following table: Companies in Same Industry B $1,600,000 $ 96,000 $ 800,000 Revenues $1,300,000 Income $ 78,000 ? Investment $2,600,000 Income as a percentage of revenues Investment turnover 1.5% 2.0 ROI 3% After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.