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Return on investment is often expressed as follows: Controllable margin ROI =- Average operating assets Controllable margin Sales Sales Average operating assets (b1) Comparative data
Return on investment is often expressed as follows: Controllable margin ROI =- Average operating assets Controllable margin Sales 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).) Company A Company B Company C Sales $1,458,000 $697,400 $132,506 (a) (6) $ Net operating income $189,540 $132,506 Average operating assets $5,416,000 0.5 % Profit margin $729,000 (0) $ % (e) (9) (d) % Assets turnover Return on investment 1.9 % (i) (k) (1) Residual income (1)
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