I know headquarters wants us to add that new product line, said Dell Havasi, manager of Billings
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"I know headquarters wants us to add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division.
"But I want to see the numbers before I make any move. Our division's return on investment ROI has led the company for three years, and I don't want any letdown."
Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with yearend bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for this year are given below:
Division for this year are given below:
tabletableSalesVariable expensesContribution marginFixed expensesNet operating incometable$
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