The Penn Gas Supply Corporation uses the investment center concept for the gasoline stations that it manages in the city. The Penn Gas Supply has a 15% required rate of return on investment in order for a branch station to be viable. Select operating data for three of its stations are as follows:

a. Which station manager is doing best based only on ROI?

b. Why?

c. Are any of the stations in danger of being closed due to lack of performance?

d. What other factors should be included when evaluating the managers?

Oak Street Revenue Maple Street $8,500,000 3,500,000 $6,750,000 Hickory Street $7,500,000 2,500,000 455,000 3,500,000 Operating assets Net operating income 480,000 575,000 Maple Oak Hickory A. ROI B. Best Why? C. Danger D. Other Factors