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Calculate current sales and ROI for Larry's Farm equipment Store. (Round your ROI to 1 decimal place, (e.g., 32.1)) Assuming that the new strategy would
Calculate current sales and ROI for Larry's Farm equipment Store. (Round your "ROI" to 1 decimal place, (e.g., 32.1)) Assuming that the new strategy would reduce margin to 20%. and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROI as Larry's currently earns. (Do not round your intermediate calculations.) Suppose you presented the results of your analysis in parts a and b of this problem to Larry, and he replied. "What are you telling me? If I reduce my prices as planned, then I have to practically double my sales volume to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required? (Do not round your intermediate calculations.) [The following information applies to the questions displayed below.] Larry's Farm equipment Store has been in business for several years. The firm's owners have described the store as a "high price, high service' operation that provides lots of assistance to its customers. Margin has averaged a relatively high 26% per year for several years, but turnover has been a relatively low 0.4 based on average total assets of S800.000. A discount Farm equipment Store is about to open in the area served by Larry's, and management is considering lowering prices to compete effectively
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