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If my companies information from last year was: operating income $34,500 Sales were $54,000 Operating assets, at the beginning of the year was $68,000 Operating
If my companies information from last year was:
operating income $34,500
Sales were $54,000
Operating assets, at the beginning of the year was $68,000
Operating assets, end of year $71,000
1) How do I calculate and interpret the margin component of the expanded ROI formula?
2) How do I calculate and interpret the turnover component of the expanded ROI formula?
3) How do I calculate the ROI using the margin and turnover from the above calculations? How do I know if the ROI is acceptable?
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