Wonderful Supermarkets run a series of stores in Tuen Mun area. Wonderful measures performance of each...

 

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Wonderful Supermarkets run a series of stores in Tuen Mun area. Wonderful measures performance of each store on the basis of a target return on investment (ROI) of 15%. The manager of store will get a bonus of 10% of his/her annual salary if the yearly ROI of the store exceed the target return on investment. The following financial information is from the V City Store Sales Gross profit Net profit- Net assets at start of the year 4 2018- $ 200,000 80,000 13,000- 100,000 2019 $ 200,000 70,000- 14,000+ 80,000- 2020- $ 180,000 63,000- 10,000 60,000- Generally speaking. Wonderful has an average gross profit margin of 40% Required a Discuss the performance of V City Store by using ROI, you also need to suggest other measures, by using your findings, whether ROI is a good measure to reflect V City Store's performance? b. Management of Wonderful is also considering of using non-financial performance indicators for performance measurement, please make suggestion and explain Wonderful Supermarkets run a series of stores in Tuen Mun area. Wonderful measures performance of each store on the basis of a target return on investment (ROI) of 15%. The manager of store will get a bonus of 10% of his/her annual salary if the yearly ROI of the store exceed the target return on investment. The following financial information is from the V City Store Sales Gross profit Net profit- Net assets at start of the year 4 2018- $ 200,000 80,000 13,000- 100,000 2019 $ 200,000 70,000- 14,000+ 80,000- 2020- $ 180,000 63,000- 10,000 60,000- Generally speaking. Wonderful has an average gross profit margin of 40% Required a Discuss the performance of V City Store by using ROI, you also need to suggest other measures, by using your findings, whether ROI is a good measure to reflect V City Store's performance? b. Management of Wonderful is also considering of using non-financial performance indicators for performance measurement, please make suggestion and explain

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