A ezto.mheducation.comStudent HomeConnectsidering Adding A New Produ..SavedComparative data on three companies in the same service industry are given below.Required:2. Fill in the missing information. (Round the "Turnover" and "ROI" answers to 2 decimal places.)CompanySales$ 3,696,000$2,076,000Net operating income2$702,240$394,440Average operating assets2$1,760,000$ 2,810,000Margin%%7 %Turnover2.40Return on investment (ROI)11.40 %< Prev43 of 57Next >MacBook Air

ROI stands for Return on investment, which is a measure of performance used for determining the efficiency of the investment or to compare the efficiency of various investments. It measure directly the amount of return on specific investment, in relation to the cost of investment. The formulas are: Margin=Net operating incomeSales Turnover=SalesAverage operating assets ROI=Net operating incomeAverage operating assets Computing the missing values as: A B C Sales $3,696,000 $2,076,000 $6,744,000 Net operating income $702,240 $394,440 $472,080 Average operating assets $1,760,000 $3,460,000 $2,810,000 Margin 19% 19% 7% Turnover 2.1 0.6 2.40 ROI 39.9% 11.40% 16.8% Working : For Company A Margin = $702,240$3,696,000=19% Turnover =$3,696,000$1,760,000=2.1 ROI = $702,240$1,760,000=39.9% or 40% For Company B Margin = $394,440$2,076,000=19% ROI = $394,440Average operating assetsAverage operating assets = $394,440 11.40%=$3,460,000 Turnover =$2,076,000$3,460,000=0.6 For Company C Turnover=SalesAverage operating assets2.40 = Sales$2,810,000Sales = 2.40 ×$2,810,000Sales=$6,744,000 Margin =Net operating incomeSales7% = Net operating income$6,744,0007% ×$6,744,000 = Net operating incomeNet operating income = $472,080 ROI =$472,080$2,810,000=16.8% or 17%