Bryson Ltd specialises in golf equipment and has two divisions - (1) the Golf Clubs Division and (2) the Golf Ball Division

The following information relates to the two divisions:

	Golf Clubs Division	Golf Ball Division
Sales	$20,000,000	$12,000,000
Variable Costs	$10,000,000	$4,800,000
Fixed Costs	$6,000,000	$2,800,000
Investment	$24,000,000	$32,000,000

Bryson Ltd has a required rate of return of 15%.

2a) Calculate the return on investment (ROI) for each division.

Question 2b - PerformanceMeasurement

2b) Calculate the residual income (RI) for each division.

Question 2c - PerformanceMeasurement

Bryson Ltd is considering investing in a new opportunity for each of the divisions. The investment costs $8,000,000 and will increase each division's profit by $1,120,000.

2c) Taking into consideration your calculations in 2a, if divisional performance is assessed based on ROI, which division(s) would go ahead with the new investment?

Question 2d - PerformanceMeasurement

2d) Taking into consideration your calculations in 2b, if divisional performance is assessed based on RI, which division(s) would go ahead with the new investment?

Question 2e - PerformanceMeasurement

Bryson Ltd has approached you to develop a balance scorecard for their company.

2e) Recommend key non-financialmeasuresBryson Ltd could implement in their performance measurement system.