P11.49A (LO 4. 5) Return on investment is often expressed as follows: ROI Controllable margin Average operating assets Instructions a. Explain the advantages of breaking down the ROI calculation into two separate components. a. $20,000,000 h. 24% b. Controllable margin Sales Sales Net operating income Average operating assets. Profit margin Asset turnover Return on investment. Residual income Sales Average operating assets 1. Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. Company A Company B Company C (a) (b) $5,000,000 0.5% $1,500,000 $180,000 $750,000 $150,000 (c) (e) (2) 2% (k) $750,000 (d) (0) (h) (0) 2. Compare and contrast the performance of the three companies, with reference to their relative performance as measured by ROI and residual income. D 4 (0) (b)

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.