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Investing $1,500,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds.

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Investing $1,500,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were 5163,085,264. Assuming similar sales next year, the 1.7% increase in demand will provide 52,772,449 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $945,405 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $1,500,000 TQM investment, rounded to the nearest month? Select : 1 Submit Answer 13 months OTOM investment will not have a significant financial impact 19 months 6 months

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