roun nAMr guagha Chinwerba YOUR STUDENT NUMBER 8956311 Connor Cuts Inc is a local landscaping...

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Accounting

roun nAMr
guagha Chinwerba
YOUR STUDENT NUMBER
8956311
Connor Cuts Inc is a local landscaping company that operates three divisions:
Sales
Average Operating Asset
Net Operating Income
\table[[DIVISION],[Kitchener,Waterloo,Cambridge],[$,1,200,000.00,$,1,400,000.00,$,2,500,000.00,],[$,300,000.00,$,500,000.00,$,1,000,000.00,],[$,60,000.00,$,50,000.00,$,120,000.00,],[,14%,,10%,,16%,]]
(1) A. Calculate the ROI for each division using the formula provided by your instructor (on the white board). B. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return, performance is being measured by ROI, which division(s) will probably accept or reject the opportunity?
(2) Calculate the RI for each division using the formula provided by your instructor (on the white board):
\table[[DIVISION,],[Kitchener,Waterloo,Cambridge],[,,]]
Which of the following is NOT a way to improve ROI?
Increase sales
Reduce expenses
Reduce assets
lone of the above
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