XSport Fitness is organized as a decentralized organization. They have 2 divisions we need to scrutinize. The aerobics division and the strength division. Each one reports the following: Actual...


XSport Fitness is organized as a decentralized organization. They have 2 divisions we need to<br>scrutinize. The aerobics division and the strength division. Each one reports the following:<br>Actual<br>Strength<br>Sales<br>$4,000,000<br>$5,000,000<br>Cost of Goods Sold<br>Selling, General and Administrative<br>$2,500,000<br>$450,000<br>$1,000,000<br>$1,500,000<br>Invested Assets<br>8,000,000<br>26,000,000<br>Minimum Return on Investment Desired<br>10%<br>10%<br>Headcount in Department<br>500<br>500<br>Using the information above, what is the profit margin for each division?<br>Using the information above, what is the return on investment for each division?<br>Using the information above, what is the residual income for each division?<br>

Extracted text: XSport Fitness is organized as a decentralized organization. They have 2 divisions we need to scrutinize. The aerobics division and the strength division. Each one reports the following: Actual Strength Sales $4,000,000 $5,000,000 Cost of Goods Sold Selling, General and Administrative $2,500,000 $450,000 $1,000,000 $1,500,000 Invested Assets 8,000,000 26,000,000 Minimum Return on Investment Desired 10% 10% Headcount in Department 500 500 Using the information above, what is the profit margin for each division? Using the information above, what is the return on investment for each division? Using the information above, what is the residual income for each division?

Jun 11, 2022
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