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Return on investment (ROI) is often expressed as follows: == Income Income Investment Revenues Investment Revenues X Requirements 1. What advantages are there in the
Return on investment (ROI) is often expressed as follows: == Income Income Investment Revenues Investment Revenues X Requirements 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the blanks for the following table: (Click the icon to view the table.) After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit. Data table Companies in Same Industry A B Revenues $ 1,400,000 $ 1,100,000 C ? Income $ 210,000 $ 165.000 Investment $ 700,000 ? S 5,500,000 Income as a percentage of revenues ? 1.5% ? ? 2.0 Investment turnover ? 3% ? ROI Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry A B C Revenues S 1,400,000 $ 1,100,000 Income S 210,000 $ 165,000 Investment $ 700,000 S 5,500,000 Income as a percentage of revenues % % 1.5% Investment turnover ROI Now comment on the relative performance of these companies as thoroughly as the data permit. 2.0 % 3% % Now comment on the relative performance of these companies as thoroughly as the data permit. light on comparative performances. Thus, we determine whether B's Vreturn on investment Income and investment alone shed in comparison with A's is attributable to its Company B does Company C's investment turnover is investment or to its income. Company A in terms of income margin. Company B has a turnover of investment than does Company A. Company A's. Company C's income as a percentage of revenue is Company A's. or increasing Company C's management should Company B should emphasize increasing investment turnover by reducing concentrate on increasing its income as a percentage of revenues by increasing only its Next
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