Question
Case 1:ROI Youarecomparing the performance oftwo(2)separatedivisions,segmentsA andB,usingROIAnalysis. A B Sales P100,000.00 P500,000.00 OperatingExpenses 30,000.00 300,000.00 NetOperatingincome 70,000.00 200,000.00 AverageOperatingAssets 10,000.00 40,000.00 Required: UsingROIAnalysis,whichsegmentisperformingbetter? Toanswer this
Case 1:ROI
Youarecomparing the performance oftwo(2)separatedivisions,segmentsA andB,usingROIAnalysis.
A | B | |
| Sales | P100,000.00 | P500,000.00 |
| OperatingExpenses | 30,000.00 | 300,000.00 |
| NetOperatingincome | 70,000.00 | 200,000.00 |
| AverageOperatingAssets | 10,000.00 | 40,000.00 |
Required:UsingROIAnalysis,whichsegmentisperformingbetter? Toanswer this question,youneedto:
- Computethe ROIof each segmentand
- ComputethecomponentsofROIofeachsegment
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Operational Risk Management
Authors: Mark D Abkowitz
1st Edition
0470256982, 9780470256985
