Kase Tractor Company allows its divisions to operate as autonomous units. The operating data for 2009 follow:
Required:
a. Compute the return on sales for each division
b. Compute the return on investment for each division.
c. Which division manager is doing best? Why?
d. What other factors should be included when evaluating the managers?
For parts (b) and (c) income is defined as operating income.

Question

Kase Tractor Company allows its divisions to operate as autonomous units. The operating data for 2009 follow:
  Required:
a. Compute the return on sales for each division
b. Compute the return on investment for each division.
c. Which division manager is doing best? Why?
d. What other factors should be included when evaluating the managers?
For parts (b) and (c) income is defined as operating income.

Quizplus · Accepted Answer

The Answer of Kase Tractor Company allows its divisions to operate as autonomous units. The operating data for 2009 follow:
  Required:
a. Compute the return on sales for each division
b. Compute the return on investment for each division.
c. Which division manager is doing best? Why?
d. What other factors should be included when evaluating the managers?
For parts (b) and (c) income is defined as operating income.

Kase Tractor Company Allows Its Divisions to Operate as Autonomous