Question
Evergreen Industries operates a chain of lumber stores. Corporate management examined industry-level data and determined the following performance targets for lumber retail stores: Asset turnover
Evergreen Industries operates a chain of lumber stores. Corporate management examined industry-level data and determined the following performance targets for lumber retail stores: Asset turnover . . . . . . . . . . . . . . 1.9 Profit margin . . . . . . . . . . . . . . . . 7.0% The actual annual results for the companys lumber retail stores are as follows: Total assets at beginning of year . . . . . . . . . . . . . $10,200,000 Total assets at end of year . . . . . . . . . . . . . . . . . . 12,300,000 Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,250,000 Operating expenses . . . . . . . . . . . . . . . . . . . . . . . 25,885,000 a. For the year, how did the lumber retail stores perform relative to their industry norms? (Round percentages to one decimal point.) b. Which, as indicated by the performance measures, are the most likely areas to improve perfor- mance in the retail lumber stores? c. What are the advantages and disadvantages of setting a performance target at the start of the year compared with
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