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3. Return on Investment : comparisons of three companies, Return on investment is often expressed as follow: Income Investment = Revenue X Income Investment Revenue

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3. Return on Investment : comparisons of three companies, Return on investment is often expressed as follow: Income Investment = Revenue X Income Investment Revenue Required: 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks: Companies in Same Industry B P500,000 50.000 A Revenue P1,000,000 Income 100,000 Investment 500,000 Income as a percentage of revenue Investment turnover Return on investment P5,000,000 0.5% 2 1% After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit. (ima)

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