A B C Sales 4000000 1500000 Net operating Income 560000 210000 Average operating assets 2000000 3000000 Margin 35 Turnover 2 Return on Investment ROI 7

 Required

1 What advantages are there to breaking down the ROI computation into two separate elements margins and turnover 

2 Fill in the missing information above and comment on the relative performance of the three companies in as much detail as the data permit Make a specific recommendations about how to improve the ROI PROBLEM 1216 M.

Answer rating: 100% (QA)

1 The advantage of breaking down the ROI into margin turnover is given below The asset turnover is a vital element of overall profitability Prior to using the ROI formula managers permit operating ass... View the full answer