Selected financial data for The Portland Porcelain Works Coffee Mug Division is as follows:

Sales	$2,300,000
Operating income	$414,000
Total assets	$718,750
Current liabilities	$180,000
Target rate of return	10%
Weighted average cost of capital	8%

What is The Portland Porcelain Works Coffee Mug Division capital turnover?

	5.6
	3.2
	1.7
	12.8

Question

Selected financial data for The Portland Porcelain Works Coffee Mug Division are as follows:

Sales	$2,300,000
Operating income	$414,000
Total assets	$718,750
Current liabilities	$180,000
Target rate of return	10%
Weighted average cost of capital	8%

What is The Portland Porcelain Works Coffee Mug Division return on investment?

	18.00%
	57.60%
	7.83%
	320.00%

Question

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

	Management does not have time to concentrate on long-term strategic planning.
	Managers receive training and experience to allow advancement in the organization.
	Unit managers have decreased motivation and retention.
	Unit managers may not understand the big picture of the company.