One of the analysis models used in the company's operations is DuPont Formula, which uses a formula in the form of a combination of margin calculations and asset turnover. This formula is very useful for comprehensive analysis on company performance. Question: 1. Briefly and comprehensively describe how DuPont Formula really does useful for analyzing and evaluating performance measurement and help management in the decision-making process. 2. In Exhibit 7.1., below is described the performance measurement of three companies using Return On Assets (ROA) analysis. Briefly describe the comparison performance of the three companies.

With measurement of Profit centres using return on Assets (000) 3 companies

1. revenue : wilson 27.000 USD, Eisen 50.000 USD, Norelli 10.000 USD 2. After-Tax Cash Flow : Wilson 1.810 USD, Eisen 3.000 USD, Norelli 500 USD 3. Total Assets : Wilson 20.272 USD, Eisen 50.000 USD, Norelli 5.000 USD 4. cash flow as a % of revenue : Wilson 6.7%, Eisen 6.0%, Norelli 5.0% 5. Asset Turnover : Wilson 1.33 x , Eisen 1.00 x , Norelli 2.00 x 6. Return on Assets : Wilson 8.9%, Eisen 6.0%, 10.0% (line 4 x line 5)