Question: ABD is a software company that develops games for popular mobile devices. Selected data for two of their most successful apps (Time Wasters 4 and

ABD is a software company that develops games for popular mobile devices. Selected data for two of their most successful apps (Time Wasters 4 and Dilly Dally - The Return) are listed below.

Time Wasters 4 Dilly Dally - The Return Total
Sales $25,000,000 $43,000,000 $68,000,000
Operating Income $1,200,000 $2,600,000 $3,800,000
Average Operating Assets $3,000,000 $4,500,000 $7,500,000
Required Rate of Return 22% 22%

For both complete the following:

  1. The Margin
  2. The Turnover
  3. The Return on Investment
  4. The Residual Income

Show full working, and round the final answers to 2 decimal points correctly.

"Provide comparative interpretation for each variable"

For example if The Margin for Time Wasters is 10%, and for Dilly Dally is 12.5%, provide interpretation of what that means for the company.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!