Cost Accounting: Please help with all requirements

Return on investment (ROI) is often expressed as follows: Income Investment Income Revenues x Revenues Investment Read the requirements. Requirement 1. What advantages are there in the breakdown of the computation into two separate components? Sele a. b. c. d. The importance of investment turnover as a key to income is stressed. The importance of revenues is explicitly recognized. The important components are expressed as ratios or percentages instead of dollar figures. The breakdown stresses the possibility of trading off investment turnover for income as a percentage of revenues. Requirements 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks for the following table: Companies in Same Industry Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry Revenues Income Investment Income as a percentage of revenues Investment turnover ROI 210,000 $ 700,000 165,000 .7 3% c 1.5% 2 Revenues Income Investment Income as a percentage of revenues Investment turnover ROI Company A 210,000 $ 700,000 Company B Company C 165,000 3% After filling in the blanks, comment on the relative performance of these companies 1.5% 2.0 as thoroughly as the data permit. Print Done