(SO 4, 5) \"P1 1-58]! Return on investment is often expressed as follows: Compare and contrast performances under Controllable margin Controllable margin Sales ROI and residual ROI = A . = x . _ verage operating asset Sales Average operating assets Income. Instructions (a) Explain the advantages of breaking down the ROI calculation into two separate components. (b) 1. Comparative data on three companies operating in the same industry follow. The minimum required R01 is 10% for all three companies. Determine the missing amounts. (a) $10 000 000 Companx A Companx B Companx C I I Sales $1,000,000 $500,000 (a) Net operating income $ 100,000 $ 50,000 (b) (c) $000,000 Average operating assets $ 500,000 (c) $5,000,000 Prot margin ((1) (e) 0.5% Asset turnover (f) (g) 2 Return on investment (h) 1 % (i) Residual income (j) (k) (1) 2. Compare and contrast the performance of the three companies, with reference to their relative performance as measured by the ROI and residual income. (adapted from CGArCanada, now CPA Canada]