Winston company has two regional divisions the east
Course:- Accounting Basics
Reference No.:- EM13601462

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Winston Company has two regional divisions: the East Division and the West Division. The Board of Directors has established a minimum rate of return of 15%. 1999 sales were $2,000,000 for the East Division and $8,000,000 for the West Division. East Division's 1999 operating income was $200,000 and average operating assets during 1999 were $1,000,000. West Division's 1999 operating income was $500,000 and average operating assets during 1999 were $4,000,000. Winston's top managers wish to fire either the manager of the East Department or the manager of the West Department.Prepare a schedule providing quantitative measures of the performance of the managers of the East Division and the West Division; interpret the terms used in your schedule; and recommend which manager should be fired.

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