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For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described,
For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the original ROI computed in (1) above. |
2. | The company achieves a cost savings of $9,000 per period by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.) |
Effect | ||
Margin | % | (Click to select)IncreaseDecreaseUnchanged |
Turnover | (Click to select)UnchangedDecreaseIncrease | |
ROI | % | (Click to select)IncreaseUnchangedDecrease |
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