Answer to Question #269807 in Management for niel

Question

1.      The management of International Heal Medical Company is evaluating the performance of its three (3) divisions. The Booboo Division had operating profit of ₱24,950 and on average used assets with a book value of ₱311,900. The Splint Division had an operating profit of ₱17,500 and used average assets of ₱177,950. The Intensive Care Division had an operating profit of ₱28,500 and average assets of ₱475,000. The company is planning to award the Intensive Care Division relying on its high operating profit. Should the management continue with this decision? Justify your answer.

Answer 1

Intensive care units (ICUs) are specialist hospital wards that provide treatment and monitoring for people who are very ill. They're staffed with specially trained healthcare professionals and contain sophisticated monitoring equipment. This gives the reason as to why management of International Heal Medical Company should award the division.