Reference no: EM132712212

XYZ company manufacures a range of household products .Stephen is head of the Hardware Divison .Stephen's performance is based on his divison's return on investment .The following data relates to the Hardware Divison for the past three months

Sales $6,552,000
Operating Profit $650,916
Invested Capital $8,100,000

In an effort to improve the current year 's performance .Stephen is considering the acquisition of two competitors that are expected to have the financial characterstices

                         Projected Sales           Projected Operating expense          Projected Invested capital

Brown Ltd       $4,050,000                      $3,120,000                                     $6,750,000
Carrie Ltd          $5,770,680                   $5,283,900                                      $6,091,818

Required:

Problem 1. Should XYZ company reject both acquistions ,acquire one or acquire both?Explain ans support your answer with calculations.

Problem 2. Identify and define the five core customer performance measures. To support your answer.Provide an example for each core measure .