Question: The following are comparative data submitted by three companies in the food services: Required: 1. What advantages are there to breaking down the ROI computation

The following are comparative data submitted by three companies in the food services:

Required:
1. What advantages are there to breaking down the ROI computation into two separate elements, margin 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 specific recommendations about how to improve the ROI.

Company B Sales.. Operating income.. Average operating assets Margin.... Turnover... Return on investment... ? S1000,000 $300,000 $ ? $ 42,000 $ $ 140,000 $ 500,000 $600,000 4% ? ? 7% ?

Step by Step Solution

★★★★★

3.40 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Breaking the ROI computation into two separate elements helps the manager to see important relationships that might remain hidden First the importan... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

478-B-M-A-D-M (2625).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

What advantages are there to this two-level directory?

What advantages are there to using a lambda-based cloning vector rather than a plasmid vector?

The following are comparative data for Sunshine State Equipment, Inc., for the 3-year period 20092011. Instructions: 1. From the foregoing data, calculate financial ratios for the three years...

The following are comparative data submitted by three companies in the food services: Required: 1. This part of the question is not part of your Connect assignment. 2. Fill in the missing information...

At the end of November, the HIM department has a YTD payroll budget of $350,000. The actual YTD amount is $375,000 because a new assistant director was hired earlier in the year than budgeted and at...

The following are comparative data submitted by three companies in the food services: Required 1. What advantages are there to breaking down the ROI computation into two separate elements, margin and...

PROBLEM 111 9 Comparison of Performance Using Return on Investment (ROI) L01 11 Comparative data on three companies in the same service industry are given below: Company A B C Sales...

PROBLEM 11-17 Comparison of Performance Using Return on Investment (ROI) LO11-1 Comparative data on three companies in the same service industry are given below: Company A B Sales Net operating...

Shown on pages 347 and 348 are the following for Casing Suppliers Ltd. of Oakville: a. General ledger printout for March 2015. b. Bank reconciliation as of February 28, 2015. c. Bank statement for...

Outsourcing transfers what were traditional internal activities to outside vendors It is a way of increasing specialization which allows the firm to focus on its core strengths and not try to do all...

Life cycle costing ( LCC ) : shows the phases of product evolution from growth to maturity. includes all relevant costs expected in the first three years of ownership. focuses on purchase price that...

15-15. What is the role of trust in building effective teams? As a manager, how would you build trust within a team?

How can budgeting assist a company in planning its workforce staffing levels?

The principal purpose of the cash budget is to see how much cash the company will have in the bank at the end of the year. Do you agree? Explain.

Karen and Mike currently insure their cars with separate companies, paying $600 and $800 a year. If they insured both cars with the same company, they would save 10 percent on the annual premiums....

Need help with screenshots 1 through 8 (one through 8). Note: Screenshot 6 (six) includes two photographs because I could not fit both the prompt and graphs in one screenshot. Please number your...

please help me with ratio analysis please provide excel spreadsheet please Income Statement Spreadsheet Example Name: Jaspreet kaur Date: Jacob Corporation INTRODUCTION The purpose of financial...