Question: Question 2 (25 marks) Vicon Manufacturing Bhd has reported the following results for last year's operation: Sales RM30 million Net operating income RM 5 million
Question 2 (25 marks) Vicon Manufacturing Bhd has reported the following results for last year's operation: Sales RM30 million Net operating income RM 5 million Average operating assets RM 15 million ...5/- Required: (a) Compute Vicon Manufacturing Bhd's margin. 13 marks] (b) Compute Vicon Manufacturing Bhd's turnover. [3 marks] (c) Compute the Vicon Manufacturing Bhd's return on investment [3 marks ] (d) Chief Executive Officer of Vicon Manufacturing Bhd has set a minimum required rate of return on average operating assets of 20%, What is the Vicon Manufacturing Bhd's residual income for the year? (4 marks) (e) Explain the relationship between return on investment and residual income. [6 marks] (1) Why return on investment and residual income are important for performance measurement in decentralised organisation? [ 6 marks)
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