Illawarra Pizzas Corporation Uses the Investment Centre Concept for the Pizza

Essay

Illawarra Pizzas Corporation uses the investment centre concept for the pizza bars that it manages in the city.Illawarra has a 30% required rate of return on investment in order for a branch to be viable.Select operating data for three of its branches for 2017 are as follows:
$$\begin{array} { | l | r | r | r | } \hline & \text { Acacia Street } & \text { Wattle Street } & \text { Gum Street } \\\hline \text { Revenue } & \$ 4250000 & \$ 3375000 & \$ 3750000 \\\hline \text { Operating assets } & 1750000 & 1750000 & 1250000 \\\hline \text { Net operating profit } & 480000 & 575000 & 455000 \\\hline\end{array}$$
Required:
a.Compute the return on investment for each.
b.Which branch manager is doing best based only on ROI? Why?
c.Are any of the pizza bars in danger of being closed due to lack of performance?
d.What other factors should be included when evaluating the managers?
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