Question
Given the following information for the Reardon Division: Asset base $500,000 Sales Revenues $725,000 Expenses $662,500 Required: If required, round your answers to four decimal
Given the following information for the Reardon Division:
Asset base | $500,000 |
Sales Revenues | $725,000 |
Expenses | $662,500 |
Required:
If required, round your answers to four decimal places.
A. What are the margin, turnover, and ROI for Reardon Division?
Margin | |
Turnover | |
ROI |
B. Reardon has an option to make an additional investment that would add $100,000 to the asset base. It would generate an additional $50,000 in sales revenue and no additional expenses. What would be the effect on margin, turnover and ROI?
Margin | |
Turnover | |
ROI |
C. Another option (independent of alternative B) for Reardon is to run an advertising campaign that would require additional advertising expenses of $37,500, but the best estimate is the campaign would generate an additional $75,000 of revenue. What would be the effect on margin, turnover and ROI?
Margin | |
Turnover | |
ROI |
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