Moto Corp Allows Its Divisions to Operate as Autonomous Units

Essay

Moto Corp allows its divisions to operate as autonomous units.The operating data for 2015 follow:
$$\begin{array} { | l | r | r | r | } \hline & \text { Plows } & \text { Tractors } & \text { Combines } \\\hline \text { Revenues } & \$ 2,250,000 & \$ 500,000 & \$ 4,800,000 \\\hline \text { Accounts receivable } & 800,000 & 152,500 & 1,435,000 \\\hline \text { Operating assets } & 1,000,000 & 400,000 & 1,750,000 \\\hline \text { Net operating income } & 220,000 & 60,000 & 480,000 \\\hline \text { Taxable income } & 165,000 & 90,000 & 385,000 \\\hline\end{array}$$ Required:
a.Compute the investment turnover for each division.
b.Compute the return on sales for each division.
c.Compute the return on investment for each division.
d.Which division manager is doing best? Why?
e.What other factors should be included when evaluating the managers?
For parts (b)and (c)income is defined as operating income.