Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its
Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its current return on sales ratio by 10%, but decrease its turnover by 10%. Requirements (a) Itthe division undertakes this promotion, by what percentage would the return on investment increase or decrease? [b] Itthe division undertakes this promotion, by what percentage will the return on sales ratio need to increase in order for the return on investment to increase by 5%? Requirement {3] If the division undertakes this promotion, by what percentage would the return on investment increase or decrease? Begin by selecting the labels for the return on investment formula and calculate the return on investment if the promotion is undertaken. {Enter all amounts to two decimal places, XXX and round the return on investment to three decimal places, XXXX.) :l x l:| 2 Return on investment Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its current return on sales ratio by 10%; but decrease its turnover by 10%. Requirements [a] lfthe division undertakes this promotion, by what percentage would the return on investment increase or decrease? [bl lfthe division undertakes this promotion, by what percentage will the return on sales ratio need to increase in order for the return on investment to increase by 5%? Requirement {3] If the division undertakes this promotion, by what percentage would the return on investment 'ncrease or decrease? Begin by selecting the labels for the return on investment formula and calculate the return on investment if the promotion is undertaken. {Enter all amounts to two decimal places. XXX and round the return on investment to three decimal |pIlaces. XXXX.) 2 Return on investment Percentage change Rehnntn1sams Sedes Turnover
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started