Question: [7 Marks] The following data have been extracted from the year-end reports of two companies: Company X and Company Y: Sales Operating income Average operating
![[7 Marks] The following data have been extracted from the year-end](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66969463bf6e8_41966969463348f1.jpg)
[7 Marks] The following data have been extracted from the year-end reports of two companies: Company X and Company Y: Sales Operating income Average operating assets Margin Turnover Company X $800,000 $56,000 A? B%? C? Company Y D? E? $125,000 4% 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 answer should 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
