Comparing ROI

Ariana Stratford, vice president for Newtronics, Inc., was reviewing the latest results for two divisions. The first, located in Baja California, Mexico, had posted income of $150,000 on assets of $1,500,000. The second, in Punt-on-Thames, England, showed income of $230,000 on assets of $2,000,000.

Required:

1. Calculate the ROI for each division. Round your answer to one decimal place.

	ROI
Mexican Division	fill in the blank 1	%
British Division	fill in the blank 2	%

2. Can a meaningful comparison be made of the British Division's ROI to the Mexican Division's ROI?

YesNoNo

Which of the four data analytic typesdescriptive, diagnostic, predictive, or prescriptivewill Ariana use to assess the performance of each division? More than one type may be used. (See Exhibits 2.5 and 2.6, pp. 37, 40, for a review of data analytic types.)

Descriptive and DiagnosticDiagnostic and PredictivePredictive and PrescriptivePrescriptive and DescriptiveDescriptive and Diagnostic