ABD is a software company that develops games for popular mobile devices. Selected data for two of
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Question:
ABD is a software company that develops games for popular mobile devices. Selected data for two of their most successful apps (Time Wasters 4 and Dilly Dally - The Return) are listed below.
| Time Wasters 4 | Dilly Dally - The Return | Total | |
| Sales | $25,000,000 | $43,000,000 | $68,000,000 |
| Operating Income | $1,200,000 | $2,600,000 | $3,800,000 |
| Average Operating Assets | $3,000,000 | $4,500,000 | $7,500,000 |
| Required Rate of Return | 22% | 22% |
For both complete the following:
- The Margin
- The Turnover
- The Return on Investment
- The Residual Income
Provide comparative interpretation for each variable.
For example if The Margin for Time Wasters is 10%, and for Dilly Dally is 12.5%, provide interpretation of what that means for the company.
Show full working, and round the final answers to 2 decimal points correctly.
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