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What should the manager do

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Question - Monogram Wall is located in the hearth of Ontario and specializes in customized metal signs that are perfect for home decorations, housewarming or wedding gifts, corporate logos and many more. Currently, the company has two manufacturing plants. Each plant's manager has the authority to make investments as needed and is evaluated based largely on ROI. Monogram Wall's Vaughan plant reported the following results for the past year:

Sales $850,000

Variable costs 612,000

Controllable fixed costs 206,500

Average operating assets 350,000

Required -

(a) Assume that the manager of the Vaughan-plant is able to reduce both variable and controllable fixed costs by 15% without any change in sales or operating assets. Compute the base-line and the adjusted ROIs. What should the manager do?

(b) Consider the balanced scorecard. Explain what the purpose of the customer perspective is. Provide an example.

(c) Explain what cost center is.

Reference no: EM133155395

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