Divisional performance measurement The Peddleworth Corporation is a decentralized firm with three operating divisions. The performance of each division's management is compared using investment center analysis. Salary increases and other benefits are assigned primarily on the relative performance of division managers as reflected by the investment center analysis.

Following are data for the three divisions for the year just completed.

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Division A B C Sales $900,000 $400,000 $150,000 Product expense 400,000 250,000 70,000 Operating expenses. 350,000 80,000 50,000 Gross assets... 1,200,000 800,000 300,000 Net assets 800,000 700,000 100,000 Assets not employed in normal operations.. 300,000