The following financial statements apply to Vita division, one of three investment centers operated by Nexis Corporation. Nexis Corporation has a desired rate of return of 15%. Nexis Corporation headquarters has N$80 000 of additional operating assets to assign to the investment centers.

Vita Division Income Statement for the year ended 30 August 2021

	N$
Sales Revenue	78 695
Cost Of Goods Sold	(50 810)
Gross Margin	27 885
Operating Expenses
Selling Expenses	(1 200)
Depreciation Expenses	(1 125)
Operating Income	25 560
Non-Operating Expense
Loss on sale of Land	(3 200)
Net Income	22 360

Below is a Balance Sheet of Vita Division as at 31 August 2021

Assets	N$
Cash	8 089
Account Receivables	22 870
Merchandise Inventory	33 460
Equipment	77 581
Non Operating Assets	8 250
Total Assets	150 250
Liabilities
Account payable	5 000
Notes Payable	58 000
Stock Holder equity
Common Stock	55 000
Retained Earnings	32 250
Total Liability & Stock Holder Equity	150 250

REQUIRED:		MARKS
1.	Write a Memo to the Manager of Nexis Corporation and explain to him about the following methods of measuring divisional performance. 1. Return on Investment 2. Residual Income 3. Sales Growth Measure. 4. In your Memo, clearly indicate the objective of measuring divisional performance, talk about the long term and short term performance measure using each method, the advantage and disadvantage of measuring divisional performance using each method, in your	25

	conclusion kindly advise the Manager the best method and explain why you deem it fit. NB! Make use of the APA referencing style. Your memo must be typed in Times New Roman font, size 12, double spaced and justified margins. The information in your memo must contain between 500 and 1 000 words. Plagiarizing students will be penalized.
TOTAL MARKS		25