Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 11 - Performance Measurement in Decentralized Organizations - Exercises - Page 499: Exercise 11-1

Answer

1. 8%; 2. 1.5; 3. 12

Work Step by Step

1. The margin for Alyeska Services Company: $\frac{600.000}{7.500.000}=8$% 2. The turnover for Alyeska Services Company: $\frac{7.500.000}{5.000.000}=1.5$ 3. The return on investment (ROI) for Alyeska Services Company: $8 \times 1.5 = 12$
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