Question
Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales
Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division.
Frozen Foods Division: | ||
Year 1 | Year 2 | |
Sales | $6,000,000 | $6,200,000 |
Operating income | 420,000 | 434,000 |
Average operating assets | 4,000,000 | 4,000,000 |
Canned Foods Division: | ||
Year 1 | Year 2 | |
Sales | $2,400,000 | $2,600,000 |
Operating income | 120,000 | 117,000 |
Average operating assets | 1,000,000 | 1,000,000 |
REQUIRED:
Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division. (Round your answers to four significant digits.)
Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division. (Round your answers to four significant digits.)
Explain the change in ROI from Year 1 to Year 2 for each division.
Which of the data analytic typesdescriptive, diagnostic, predictive or prescriptiveis Allard using in comparing Year 1 to Year 2 for the ratios? Explain. (See Exhibits 2.5 and 2.6, for a review of data analytic types.)
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