Industrial Products Corporation (IPC) is a manufacturer of industrial products. By 1996, more than a dozen IPC divisions manufactured a number of industrial-type products. Each division is headed by a division manager and consists of one or more factories located throughout the United States. As with each division of IPC, they all had their own balance sheet and income statement. IPC uses long and short term planning programs and each month each division manager submits a performance report which is reviewed by senior management. It should be noted that IPC's primary performance metric for the divisions has been their rate of return on investment (ROI). Pumps are one of the most commonly used machines in the industry. Although the U.S. pump industry is considered mature, the number of pump manufacturers declined to 405 companies by 1987. However, during the 1990s the industry improved slightly and the total number of pump manufacturers pumps increased to 489. Industrial pumps being the most important product. In the sector, they held 55 percent of market production. According to the Pump Industry Analyst of March 1996, "[t]he global economy is experiencing mixed fortunes in terms of projected growth for 1996 and the combination of cautious optimism and gloom prevailing in world markets. He added that "[t]he US economy is expected to grow 2.2 percent in 1996, after a disappointing 1.5 percent last year." » On an equally positive note, U.S. demand for fluid handling pumps is expected to grow 5.5 percent annually through the year 2000 due to increased capital investment by process industries (Publications – Pumps, 1996). company and Mr. Brandt, the d...... middle of paper ......s CitedAbiNader, Roger. “Cost control”. Business Encyclopedia. 2nd ed., http://www.referenceforbusiness.com, accessed February 2011. Anthony, Robert N. and Vijay Govindarajan. Management control systems. 12th ed. New York: McGraw-Hill/Irwin, 2007. “Economic Review.” Pump industry analyst. 1996, 3 (March 1996): 14Mäkeläinen, Esa. “Why EVA is better than ROI. . . and profits, operating profit, etc. » Powerpoint presentation. 1998, http://www.evanomics.com, accessed February 2011. “Publications – Pumps”. Pump industry analyst. 1996, 4 (April 1996): 14Schmidt, Marty J. Business Case Essentials: A Guide to Structure and Content. 3rd ed. Boston, MA: Solution Matrix Ltd., 2009. United States Census Bureau. 1997 Economic Census. Washington, DC: Government PrintingOffice, 1999., available at http://www.census.gov.