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(Solution) - Chris Gomez president of Medina Travel Company a travel agency

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Chris Gomez, president of Medina Travel Company, a travel agency, is seeking a method of evaluating her seven branches. Each branch vice president is authorized to hire employees and devise competitive strategies for the branch territory. Ms. Gomez wonders which of the following three different measures would be most suitable: return on investment, operating income, or return on sales (operating income divided by sales).
a. Using the concept of controllability, advise Ms. Gomez about the best performance measure.
b. Explain how a balanced scorecard can be used for Ms. Gomez.


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This question was answered on: Jul 11, 2017

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