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Question: Return on investment (ROI) is often expressed

Return on Investment

(ROI) is often expressed as follows:
Return on investment (ROI) is often expressed as follows:


Required:
1. What advantages are there in the breakdown of the computation into two separate components?
2. Fill in the following blanks:


After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.

Required: 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the following blanks:
Return on investment (ROI) is often expressed as follows:


Required:
1. What advantages are there in the breakdown of the computation into two separate components?
2. Fill in the following blanks:


After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.

After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.





Transcribed Image Text:

Income Income Revenue Investment Revenue Investment Companies in Same Industry A B C Revenue $1,000,000 $500,000 ? $ 100,000 $ 50,000 $ 500,000 Income ? Investment ? $5,000,000 Income as a percentage of revenue ? ? 0.5% Investment turnover ? ? ROI ? 1% ?


3.99

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