roun nAMr

guagha Chinwerba

YOUR STUDENT NUMBER

$8956311$

Connor Cuts Inc is a local landscaping company that operates three divisions:

Sales

Average Operating Asset

Net Operating Income

$\backslash$table$[[$DIVISION$],[$Kitchener$,$Waterloo,Cambridge$],[$$$,1,200,000\mathrm{.}00,$$$,1,400,000\mathrm{.}00,$$$,2,500,000\mathrm{.}00,],[$$$,300,000\mathrm{.}00,$$$,500,000\mathrm{.}00,$$$,1,000,000\mathrm{.}00,],[$$$,60,000\mathrm{.}00,$$$,50,000\mathrm{.}00,$$$,120,000\mathrm{.}00,],[,14\%,,10\%,,16\%,]]$

$(1)$ A$.$ Calculate the ROI for each division using the formula provided by your instructor $($on the white board$).$ B$.$ Assume that each division is presented with an investment opportunity that would yield a $9\%$ rate of return, performance is being measured by ROI, which division$($s$)$ will probably accept or reject the opportunity?

$(2)$ Calculate the RI for each division using the formula provided by your instructor $($on the white board$)$:

$\backslash$table$[[$DIVISION$,],[$Kitchener$,$Waterloo,Cambridge$],[,,]]$

Which of the following is NOT a way to improve ROI?

Increase sales

Reduce expenses

Reduce assets

lone of the above