Question
The Greek Manufacturing Company has three divisions: Alpha, Beta, and Gamma. The divisions are structured as investment centers. The following responsibility reports were prepared for
The Greek Manufacturing Company has three divisions: Alpha, Beta, and Gamma. The divisions are structured as investment centers. The following responsibility reports were prepared for the three divisions for the prior year: Alpha Beta Gamma Revenue 4,595,000 4,825,000 4,625,000 Operating Expenses 3,616,600 3,372,000 3,226,800 Operating Income before Service Department Charges 878,400 2,453,000 2,398,200 Service Department Charges 782,400 2,088,600 948,200 Income From Operations 396,000 464,400 550,000 Invested Assets 2,625,000 3,360,000 3,545,000 Compute each divisions (1) profit margin and (2) investment turnover. Identify opportunities for improving the companys financial performance.
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