The management at Barrallier Company, a manufacturer of computer software packages, is attempting to recover from an earthquake that destroyed some of their accounting records. The main computer system was severely damaged. The following information was recovered:

Gofran Nabeel Tanzil

Sales $5 000 000 (a) $2 300 000

Net operating profit $3 000 000 $1 300 000 $1 150 000

Operating assets (b) (c) $1 533 334

Return on investment 0.50 0.30 (d)

Return on sales (e) 0.20 1

Investment turnover (f) (g) 3

Required:

1. What were the sales for the Nabeel Division?

2. What is the value of the operating assets belonging to the Gofran Division?

3. What is the value of the operating assets belonging to the Nabeel Division?

4. What is the Tanzil Division's return on investment?

5. What is the Gofran Division's return on sales?

6. What is Gofran Division's investment turnover?

7. What is Nabeel Division's investment turnover?

8. Why is it important to distinguish between the performance of a manager and the performance of the organisation subunit for which the manager is responsible? Give an example.