DEMONSTRATION PROBLEM: Residential Division of Drippy Faucets last year:

o Net sales $$4,160,000$

o Operating income $$1,040,000$

o Average total assets $$5,200,000$

o Required rate of return $18\%$

$$ Profit margin ratio $=$

Interpretation:

$$ Asset turnover ratio$=$

Interpretation:

$$ ROI $=$

Interpretation:

$$ RI $=$

Interpretation:

Balanced Scorecard

Goals Measures

Financial Perspective

Customer Perspective

Internal Business Perspective

Learning$/$Growth Perspective