need proper solution step by step 11P11.49A (LO 4. 5) Return on investment is often expressed as follows:ROI=Controllable marginAverage operating assetsInstructionsa. Explain the advantages of breaking down the ROI calculation into two separate components.a. $20,000,000h. 24%b.Controllable marginSalesSalesNet operating incomeAverage operating assetsProfit marginAsset turnoverReturn on investmentResidual income1. Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amants.Company CCompany A$1,500,000Company B$750,000(a)(b)$180,000$5.000.0000.5%SalesAverage operating assets$750,000(d)(1)(h)$150,000(c)(e)(2)2%4(0)(b)D(0)2. Compare and contrast the performance of the three companies, with reference to their relative performance as measured by ROI and residual income.

ROI :— Profit Margin * Assets Turnover Return on investment or return on costs is a ratio between…

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)

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)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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