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Please see question attached Thriftco operates a chain of retail stores. The following data are for the stores of the Plains Division for the most
Please see question attached
Thriftco operates a chain of retail stores. The following data are for the stores of the Plains Division for the most recent year (in thousands of dollars). Sioux Falls Omaha Sales Cost of Goods Sold Gross Margin 1,200 624 576 1,300 728 1,500 750 750 572 62 74 (Depreciation, property tax, insurance, utilities) 66 333 297 389 Expenses Occupancy Salaries/wages Advertising Miscellaneous Overhead 56 (50% local, 50% allocated corporate advertising) (general corporate overhead, allocated at 9% of sales) 108 532 112 578 135 687 Segment margin Average operating assets 1,000 950 1,100 a) Recompute segment margin, Use the recomputed numbers to answer the remaining questions. b) is the Sioux Falls store really losing money? Explain briefly. c) Compute ROI for each store. d) Compute residual income for each store, assuming that Thriftco's target ROI is 15%. e) Which is the top performing store? Identify the main reason for its superior performance
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