Big Bath Emporium (BBE), a private company based in Toronto, is the city’s largest manufacturer and vendor of bathtubs, showers, and sinks.

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1.Which division is the better performer according the use of return on investment (ROI)? Why?

2. Suppose the manager of Assembly Division were offered a one-year project that would increase his average operating assets by $1,000,000 and increase profit by $150,000. Would the manager accept the project under the current method of performance evaluation? Why, or why not?

3. Explain in what ways ROI can be used as a performance measurement for this investment analysis.

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