Question: [ 7 Marks ] The following data have been extracted from the year-end reports of two companies: Company X and Company Y: Company X Company

[7 Marks] The following data have been extracted from the year-end reports of two companies: Company X and Company Y:

Company X

Company Y

Sales

$800,000

D ?

Operating income

$56,000

E ?

Average operating assets

A ?

$125,000

Margin

B %?

4%

Turnover

C ?

6

Return on investment

14%

F %?

Required:

a) [6 Marks] Fill in the missing data in the above table. Calculations are not required and they will NOT BE MARKED. Also, the answershould be a whole number;there should NOT be a decimal point in the answer. Make sure that you properly label your answer as in the like manner (e.g., Company X, A = xxx)

b) [1 Marks] Suppose that John's performance is measured based on ROI. Suppose also that the company that John works for requires an ROI on all investments of at least 15%. If John currently has an ROI of 20%, and an investment opportunity arises in his department that has an ROI of 18%, why might he not invest in this opportunity? Explain in one sentence.

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