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Return on investment (ROI) is often expressed as follows: Income Income Revenues X Investment Revenues Investment Read the requirements. . . . Requirement 1. What

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Return on investment (ROI) is often expressed as follows: Income Income Revenues X Investment Revenues Investment Read the requirements. . . . Requirement 1. What advantages are there in the breakdown of the computation into two separate components? Select from the options below. (Complete all input fields.) a. The breakdown stresses the possibility of trading off investment turnover for income as a percentage of revenues. b. The importance of investment turnover as a key to income is stressed. C. The importance of revenues is explicitly recognized. d. The important components are expressed as ratios or percentages instead of dollar figures. Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry Company A Company B Company C Revenues $ 1,500,000 $ 1,200,000 $ 24,000,000 Income $ 300,000 $ 240,000 $ 240,000 Investment EA 750,000 $ 12,000,000 $ 12,000,000 Income as a percentage of revenues 20.0 % 20.0 % 1.0% anReturn on investment (ROI) is often expressed as follows: Income Income Revenues X Investment Revenues Investment Read the @uirements. @ Companies in Same Industry Company A Company B Company C Revenues $ 1,500,000 $ 1,200,000 $ 24,000,000 Income $ 300,000 $ 240,000 $ 240.000 Investment $ 750,000 $ 12,000,000 $ 12,000,000 Income as a percentage of revenues 20-0 % 20-0 % 1.0 % Investment turnover 2-0 0-1 2.0 ROI 40 % 2 % 2 % New comment on the relative performance of these companies as thoroughly as the data permit. Income and investment alone shed little light on comparative performances. Thus, we cannot determine whether B's low return on investment in comparison with A's is attributable to its larger investment or to its lower income. Company B does CompanyA in terms of income margin. Company B has a turnover of investment than does Company A. Company C's investment turnover is as high as Company A's. Company C's Return on investment (ROI) is often expressed as follows: Income Income Revenues x Investment Revenues Investment Read the muirements. E) Company A Company B Company C Revenues $ 1,500,000 $ 1,200,000 $ 24,000,000 Income $ 300,000 $ 240,000 $ 240,000 Investment $ 750,000 $ 12,000,000 $ 12,000,000 Income as a percentage of revenues 20-0 D/o 20-0 % 1.0 \"/0 Investment turnover 2-0 0-1 2.0 ROI 40 % 2 % 2 % Now comment on the relative performance of these companies as thoroughly as the data permit. Income and investment alone shed little light on comparative performances. Thus, we cannot determine whether B's low return on investment in comparison with A's is attributable to its larger investmentorto its lower income. Company B does CompanyA in terms of income margin. Company B has a turnover of investment than does Company A. Company C's investment turnover is Company A's. Company C's income as a percentage of revenue is lower than Company A's. 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: Companies in Same Industry A B C Revenues $ 1,500,000 $ 1,200,000 ? Income $ 300,000 $ 240,000 ? Investment $ 750,000 ? $ 12,000,000 Income as a percentage of revenues ? ? 1.0% Investment turnover ? ? 2 ROI ? 2% ? After lling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit

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