oan Young is the CPO for the Watson Company, a machine parts manufacturer. Young was hired a month ago to create and manage a performance metrics platform for the company. To start her project, Young asked managers within the company to provide her with examples and questions they think can be answered by performance metrics. Their responses can be found in the exhibit. She would like your help in determining the correct measure to use for each of these situations. Using the information included within the exhibit, complete the table for the examples below. For each example in column A, enter the appropriate measure from the option list provided in column B.

	A	B
1	Manager Feedback	Metric
2	Example 1
3	Example 2
4	Example 3
5	Example 4
6	Example 5
7	Example 6
8	Example 7

Colleagues, As you know, I am implementing a new performance metrics platform that will go live this fall. I have brought in Metrix Consulting, a firm that specializes in developing performance measures designed to capture relevant and actionable data for our businesses. Last week, I sent a survey to our managers asking them to provide me with examples of the types of questions that they think we need metrics to capture. A sampling of their responses is provided below:

	Example 1: I noticed that the interest coverage ratio has declined since last year, with a greater portion of our operating income being used to fund our interest payments. Which ratio should I use to understand the effect this may have on our profit margin?
	Example 2: Over the last few years, our return on assets has been relatively stable. However, our return on equity has declined over that same time period. Which ratio can I use to help me understand what may be driving this decline?
	Example 3: Corporate tax rates have increased this year. I know this will affect our net profit margin, but I would like to be able to capture this effect independent of the new bond issuance that took place earlier this year.
	Example 4: I have several business cases on my desk for approval that involve purchases of high-end capital equipment. For each of these, I would like a ratio that would help me understand how profitable these purchases are expected to be and what income I can expect them to generate.
	Example 5: I have created a new department within my division. The manager for the department has been given $1 million in capital to start, and my expectation is that the department will be profitable in two years. I need a way to measure its performance.
	Example 6: At a company-wide level, I would like to know what we are generating in terms of sales dollars relative to our asset base.
	Example 7: If I look at the company's income statement each year, I really only want to know one thing: How did we do from a bottom-line perspective relative to the top line? This measure, as a stand-alone number and in comparison to the prior year, lets me know how we are doing.

We will be scheduling a retreat within the next month to go through all of the examples you and your colleagues have developed and to discuss how we will populate our performance management dashboards. Regards, Joan Joan Young Chief Performance Officer

Nope I am providing all of the information for help.

The below examples provide the information for the chart.

Colleagues, As you know, I am implementing a new performance metrics platform that will go live this fall. I have brought in Metrix Consulting, a firm that specializes in developing performance measures designed to capture relevant and actionable data for our businesses. Last week, I sent a survey to our managers asking them to provide me with examples of the types of questions that they think we need metrics to capture. A sampling of their responses is provided below:

	Example 1: I noticed that the interest coverage ratio has declined since last year, with a greater portion of our operating income being used to fund our interest payments. Which ratio should I use to understand the effect this may have on our profit margin?
	Example 2: Over the last few years, our return on assets has been relatively stable. However, our return on equity has declined over that same time period. Which ratio can I use to help me understand what may be driving this decline?
	Example 3: Corporate tax rates have increased this year. I know this will affect our net profit margin, but I would like to be able to capture this effect independent of the new bond issuance that took place earlier this year.
	Example 4: I have several business cases on my desk for approval that involve purchases of high-end capital equipment. For each of these, I would like a ratio that would help me understand how profitable these purchases are expected to be and what income I can expect them to generate.
	Example 5: I have created a new department within my division. The manager for the department has been given $1 million in capital to start, and my expectation is that the department will be profitable in two years. I need a way to measure its performance.
	Example 6: At a company-wide level, I would like to know what we are generating in terms of sales dollars relative to our asset base.
	Example 7: If I look at the company's income statement each year, I really only want to know one thing: How did we do from a bottom-line perspective relative to the top line? This measure, as a stand-alone number and in comparison to the prior year, lets me know how we are doing.