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Question 33 Return on investment is often expressed as follows: Controllable margin ROI = Average operating assets Controllable margin Sales Sales Average operating assets (61)
Question 33 Return on investment is often expressed as follows: Controllable margin ROI = Average operating assets Controllable margin Sales Sales Average operating assets (61) Comparative data on three companies operating in the same industry follow. The minimum required ROI is 10% for all three companies. Determine the missing amounts. (Round asset turnover of Company B and return on investment of Company C to 1 decimal place, e.g. 15.2 or 15.2% and all other answers to o decimal places, e.g. 152. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Company A Company B Company C (a) 19704000 Sales $1,352,000 $682,800 $ (b) Net operating income $162,240 $122,904 $ $676,000 Average operating assets (c) $ $4,926,000 (d) % (e) % Profit margin 0.6 % (f) (9) Assets turnover 4 (h) % 1.8 % (0) % Return on investment 6) Residual income (1) (k) $ $ $
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