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Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI x Average operating assets Sales Average operating assets (b1) Comparative
Return on investment is often expressed as follows: Controllable margin Controllable margin Sales ROI x Average operating assets Sales Average operating assets (b1) 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).) Sales Company A $1,476,000 Net operating income $191,880 Average operating SA assets Profit (d) $738,000 % (e) margin Assets (f) turnover Return on (h) % investment Residual (i) $ (k) $ income Company B $703,300 $147,693 SA SA Company C % $4,644,000 0.6 % 2.1 % (i) (1) $ 3 %
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