Evaluating division performance over time The Laser Division of FOX Technologies Inc. has been…

Evaluating division performance over time

The Laser Division of FOX Technologies Inc. has been experiencing revenue and profit growth during the years 2010–2012. The divisional income statements are provided below.

Assume that there are no charges from service departments. The vice president of the division, Stacy Harper, is proud of her division’s performance over the last three years. The president of FOX Technologies Inc., Hal Nelson, is discussing the division’s performance with Stacy, as follows:

1. Determine the profit margins for the Laser Division for 2010–2012.

2. Compute the investment turnover for the Laser Division for 2010–2012.

3. Compute the rate of return on investment for the Laser Division for 2010–2012.

4. Evaluate the division’s performance over the 2010–2012 time period. Why was Hal concerned about the performance?