Return on investment is often expressed as follows:d.Requirements1. What are the advantages of breaking down the computation into two separate components?2. Fill in the blanks for the following table:RevenuesIncomeInvestmentIncome as a percentage of revenuesInvestment turnoverROIRequirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.)Companies in Same IndustryBIncome and investment alone shedinvestment or to itsA1,400,000 $210,000 $700,000%Company B does%income.1,100,000165,000%IncomeIncomeRevenuesInvestment Revenues Investment3%CNow comment on the relative performance of these companies as thoroughly as the data permit.light on comparative performances. Thus, weCompany B should emphasize increasing investment turnover by reducingpercentage of revenues by increasing only its5,500,0001.5%2.0=%Company A in terms of income margin. Company B has aCompany A's. Company C's income as a percentage of revenue isXdetermine whether B'sor increasingreturn on investment in comparison with A's is attributable to itsturnover of investment than does Company A. Company C's investment turnover isCompany A's.Company C's management should concentrate on increasing its income as a

Introduction to ROI (Return on Investment)Return on Investment is the ratio between Net-Profit and…

Return on investment is often expressed as follows: Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: d. Revenues Income Investment Income as a percentage of revenues Investment turnover Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B $ $ $ A 1,400,000 $ 210,000 $ 700,000 % 1,100,000 165,000 Income Revenues Income Investment Revenues Investment % $ C C 5,500,000 1.5% 20

Return on investment is often expressed as follows: Requirements 1. What are the advantages of breaking down the computation into two separate components? 2. Fill in the blanks for the following table: d. Revenues Income Investment Income as a percentage of revenues Investment turnover Requirement 2. Fill in the blanks for the following table: (Enter investment turnover to the nearest tenth, X.X.) Companies in Same Industry B $ $ $ A 1,400,000 $ 210,000 $ 700,000 % 1,100,000 165,000 Income Revenues Income Investment Revenues Investment % $ C C 5,500,000 1.5% 20

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 13MC: A responsibility center structure that considers investments made by the operating segments by using...

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