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Star Wars Entertainment Inc. has two operating divisions with the following information for the most recent fiscal year. Division A Division B Sales Sales $12,000,000

Star Wars Entertainment Inc. has two operating divisions with the following information for the most recent fiscal year.

Division A Division B Sales

Sales $12,000,000 $25,000,000

Net operating income $600,000 $800,000

Average Operating Assets $3,000,000 $5,000,000

The minimum rate of return (ROI) set by company management is 15%. Note: This information is used for questions #31 - 33. Use the following formulas to complete question #32.

Question 31- Both divisions above were offered an opportunity to add an investment that would result in a 17% ROI. Explain if each division would most likely take or reject this opportunity.

question 32 -

Calculate ROI based on the more detailed calculation of ROI, which includes Margin and Turnover.

Evaluate the divisions based on the three calculated values. Which division would you determine has the best performance in each area?

question 33-

Identify two additional elements that you would include in a Balanced Scorecard for evaluating this company. Explain your reasons.

Urgent

Managerial Accounting

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