The following are comparative data submitted by three companies in the food services: Required: 1. What advantages
Question:
The following are comparative data submitted by three companies in the food services:
Required:
1. What advantages are there to breaking down the ROI computation into two separate elements, margin and turnover?
2. Fill in the missing information above, and comment on the relative performance of the three companies in as much detail as the data permit. Make specific recommendations about how to improve the ROI.
Transcribed Image Text:
Company B Sales.. Operating income.. Average operating assets Margin.... Turnover... Return on investment... ? S1000,000 $300,000 $ ? $ 42,000 $ $ 140,000 $ 500,000 $600,000 4% ? ? 7% ?
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1 Breaking the ROI computation into two separate elements helps the manager to see important relationships that might remain hidden First the importan...View the full answer
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Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
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