Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

DiVision Q's currentturnover is t2 0 and its return on sales ratio is t2 The division is conSidering a sales promotion thatwould increase its current

image text in transcribed
DiVision Q's currentturnover is t2 0 and its return on sales ratio is t2 The division is conSidering a sales promotion thatwould increase its current return on sales ratio by 10% butdecrease its turnover by t0% Requirements (21) It the dwision undertakes this promotion' by what percentage would the return on investment Increase or decrease? (b) ltthe dwision undertakesthis promotion' by what percentage Will the return on sales ratio need to increase in orderforthe return on investmentto Increase by 5%? Requirement (a) ltthe diVision undertakes this promotion' by what percentage would the return on investment increase or decrease? Begin by selecting the labels forthe return on investment formula and calculate the return on investment it the promotion is undertaken (Enterall amounts to two deCimal places XXX and round the return on investment to three decimal places X XXX ) x : Return on investment x : Now calculate the percentage by which the return on investment increased or decreased, (Do not round until your final answer then round the percentage change to two decimal places XXX'Vn Use a minus sign or parentheses fora decrease) ltDiViSion Q undertakes this promotion: the return on investment Will change by % Requirementth} It the diVIsion undertakes this promotion. by what percentage Will the return on sales ratio need to increase in order torthe return on investment to increase by 5%? (Do not round until yourtinal answer then round the percentage increase to two deCintal places X.XX%.'> The return on sales ratio Will need to increase by \"a in order tor the return on investment to increase by 5%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Advanced Financial Accounting

Authors: Richard Baker

1st Edition

0078025648, 9780078025648

More Books

Students also viewed these Accounting questions

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago