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Managers in the various divisions at the MegaAuto Company have their performance measured using financial performance measures. For Return on Investment (ROI) measures, the manager
Managers in the various divisions at the MegaAuto Company have their performance measured using financial performance measures. For Return on Investment (ROI) measures, the manager earns bonuses based on the increase in ROl over the company average. MegaAuto is a large retail and services company offering products and services. One division of the company called MegaTune offers motor vehicle repair services. The Division has been running very successfully however it only operates in the Eastern States of Australia. The following information is forecast for the current MegaTune business division for the coming year: Profit percentage (Return on Sales): 55% Sales revenue: $40000000 Average capital employed $68750000 Additional information: MegaAuto are considering expanding the business on South Australian and Western Australian sites to become a national operation. The estimated financial outcomes for the coming year of the new expansion would be as follows: Required: Calculate the Return on Investment (ROI) percentage for the Expanded MegaTune Division for the projected (budgeted) year. (1 Mark) Note answer MUST be given as a percentage using the '\%' symbol. For example if you with to enter 10 percent, enter 10 \%
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