Bella's Boats operates fishing tours in two locations off the coast of Singapore. Each location operates as a separate investment centre. All managers are rewarded based on annual improvements in return on investment (ROI). Investment is defined as total assets minus current liabilities.

The two locations are in Changi Village and Keppel Island. Details relating to the most recent year of operations for these locations are contained in the following table.

Changi Village Keppel Island Sales revenue $ 400,000 EA 600,000 Variable costs 130,000 290,000 Fixed costs 30,000 160,000 Current assets 120,000 75,000 Current liabilities 60,000 75,000 Long-term assets 1,540,000 1,000,000Investment in boat $300,000 Expected additional annual revenues from increased customers $27,000 Expected annual cost savings (from reduced maintenance, repairs, etc.) $12,000