ADMS 2510 Study Guide - Final Guide: Net Income, Shaving Cream, Gross Margin

• School: York University
• Department: Administrative Studies
• Course: ADMS 2510
• Professor: Marcela Porporato

Document Summary

The justa corporation produces and sells three products: shaving cream, aftershave and cologne. Each product is designed, manufactured and sold by a different division; each one of the three divisions (shaving cream division, aftershave division, and cologne division) being treated as an investment centre. The manager of each division has a quarterly bonus based on return on sales, while the bonus of the ceo of the company is tied to roi. The three products are sold in canada and in the us. At the end of the last quarter of 2012, the following income statement was available: Management has expressed special concern with the us market because of the extremely poor return on sales. This market was entered during the year 2011 because of excess capacity. It was originally believed that the return on sales would improve with time; but after a year, no noticeable improvement can be seen from the results reported in the above quarterly statement.