Zephyr Industries have two divisions; Ontario and Quebec.
The results of these two divisions for were:
Quebec Ontario
Sales
Operating expenses
Operating assets,
Operating assets,
You are looking at filling a new senior management position and are
basing your decision on how well these two divisional managers performed.
Required: Assume a target rate of
If the evaluation was based on ROI, which manager would you promote?
Would your answer change if the evaluation was based on Residual Income?
