Question: The following paragraph appeared in a chain motel's monthly in-house newsletter announcing the creation of a trophy that will be awarded to the motel with the most outstanding performance each year: The trophy will be given to the motel with the best combination of sales revenue percentage increase and net income percentage increase.
The actual calculation will be to take the sales revenue percentage increase, add the net income percentage increase, and divide that total by 2, with equal weight given to both sales revenue and net income growth. Only motels achieving a minimum 15% sales revenue increase will be eligible.
What is your evaluation of the way performance is to be measured in this motel chain? Use two or three examples to demonstrate your opinion.