Which of the following is not an advantage of decentralization:

A. Potential problems achieving goal congruence

B. Encourages use of expert knowledge

C. Improved motivation and retention

D. Frees top management's time

The Jazz Division of Heights Recording Corporation reported the following results last year:

Sales	$10,000,000
Operating Income	$2,200,000
Total Assets	$4,000,000
Current Liabilities	$2,500,000

Management's target rate of return is 12% and the weighted average cost of capital is 9%. Its effective tax rate is 32%. Calculate the ROI for the Jazz Division.

A. 12%

B. 88%

C. 55%

D. 22%

Did the Jazz Division earn or exceed the target rate of return?

A. No

B. Yes