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Question Three: (6 Points) First: Molesey Corp uses the investment center concept for the museums that it manages. Selected operating data for three of
Question Three: (6 Points) First: Molesey Corp uses the investment center concept for the museums that it manages. Selected operating data for three of its museums for 2015 are as follows: Texas $1,800,000 600,000 Ohio Dallas Revenue $1,200,000 $1,500,000 Operating assets 700,000 500,000 Net operating income 105,000 115,000 120,000 Required: 1. Compute the return on investment for each division. 2. Which museum manager is doing best based only on ROI? Why? 3. What other factors should be included when evaluating the managers?
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