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5 Swit Company has three divisions and expects each division to earn a 18% targot rate of return. The company had the followng resute last
5
Swit Company has three divisions and expects each division to earn a 18% targot rate of return. The company had the followng resute last year: 1. Division 3 reported the foloming tata: (Cick the icon to view the results.) Read the roquirements, Requirement 1. Compute Division 3's pecht margin ratio, assot tumevor ratio, and ROI. Round yout retults to three decimal paces. Interpret the result in relaton to the other two divisisns. Begin by computing Division 3 s prost margin ratio. (Enter the profit margin ratio as a pertentage rounded to ons dedimal place, XX$.) Division mar Requirement 2. Compithe and inturpret Division 35 R1. than the other two divisions. Addifionally. assots as elficiently as Oirision 1 and Division management Requirement 2. Compute and interpret Dtision 3 's Ri, First, comoute Division 3's R1, (Use parentheses or a minus oign for a nogative Ri) The 21 confirms the ROI retuils. The division meeting managemenes targat rate of retum. Requirement 3. What can you conclude babed on the financial performance KPle? fesults of decisions mace in the past. The division's manager may currenty bo implamenting new initistives to the divivon's future profiabifty: Lead indicators should be used to project whothar auch initiatives are pointing the division in the right direction. Data table can you conclude based on the financial performance KPIs? point to the same conclusion: Divis financial performance KPIs Recall, however, that financial the division is nade in the past. The division's manager may currently be implementing new initiatives to the division ves are pointing the division in the right direction. can you conclude based on the financial performance KPIs? financial performance KPIs ( point to the same conclusion: Division ectations are the division is Recall, however, that financial pel ade in the past. The division's manager may currently be implementing new initiatives to the division's ft As are pointing the division in the right direction Step by Step Solution
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