"JRTC is evaluating results for three separate business segments under his control. Selected financial information...
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"JRTC is evaluating results for three separate business segments under his control. Selected financial information for each segment follows: " Sales Operating Income Average Assets Segment A 2000000 100000 2500000
Segment B 3500000 450000 6000000 Segment
C 1600000 160000 2100000
Rank order the three segments based on "margin," "turnover," and "return on investment." How is it possible that the rankings differ based on which evaluative model is used?
Sales
Operating Income
Average Assets
Segment A
$ 2,000,000
$ 100,000
$ 2,500,000
Segment B
3,500,000
450,000
6,000,000
Segment C
1,600,000
160,000
2,100,000
Margin (as used in ROI )
Segment A
Segment B
Segment C
Turnover (as used in ROI)
Segment A
Segment B
Segment C
ROI
Segment A
Segment B
Segment C
Answer & Explanation
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