The operating performance of the three division of ABC company for 2003 is as follows: (a). Using
Question:
The operating performance of the three division of ABC company for 2003 is as follows:
(a). Using the operating profit margin percentage as the criterion, which is the most profitable division?
(b). Using the rate of return on investment as the criterion, which is the most profitable division?
(c). Which of the two measures do you think gives the better indication of overall operating performance? Explain your reasoning.
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