QUESTION #2 Return on investment is often expressed as follows: ROI= Controllable margin = Controllable margin X Sales Average operating asset. Sales Average operating assets. Required a. What would be the advantages of doing the ROI calculation as two separate components. b. 1. There are 3 companies operating in the same industry. Their comparative information is in the table below. If the minimum required ROI is 10% for all three companies, determine the amounts that are omitted in the table. Johnson Jones Smith Sales $1,000,000 $500,000 Net operating income $ 100,000 $ 50,000 Average operating assets $ 500,000 (c) Profit margin (d) Asset turnover (0) (9) Return on investment (h) 1% Residual income 0) (k) (b) $5,000,000 0.5% 2 (1) (1) 2. For all three companies compare and contrast the performance, with reference to their relative performance as measured by the ROI and residual income