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Need assistance. Discuss your suggested strategy(ies) for improving ROI and the steps that the company wouldhaveto implement to obtain the desired result(s). Calculation are below
Need assistance.
Discuss your suggested strategy(ies) for improving ROI and the steps that the company wouldhaveto implement to obtain the desired result(s). Calculation are below
Polyester Division | Rope Divisions | Nylon Division | ||
Revenue | $ 10,600,000.00 | $ 6,725,000.00 | $ 8,650,000.00 | |
Less variable expenses | ||||
Costs of goods sold | 5543000 | 2368000 | 4414000 | |
Selling & administrative | 1334000 | 649000 | 890000 | |
Contribution margin | $ 3,723,000.00 | $ 3,708,000.00 | $ 3,346,000.00 | |
Less traceable fixed expenses | ||||
Costs of goods sold | 1685000 | 1382000 | 2208000 | |
Selling & administrative | 236000 | 174000 | 273000 | |
Segment margin | $ 1,802,000.00 | $ 2,152,000.00 | $ 865,000.00 | |
Average Assets | $ 8,153,000.00 | $ 8,406,250.00 | $ 2,703,000.00 | |
Margin | Asset Turnover | ROI | ||
Segment/ Sales | Sales/Average Assets | Margin * Asset Turnover | ||
Polyester | 17.0% | 1.30 | 22.10% | |
Rope | 32.0% | 0.8 | 25.60% | |
Nylon | 10.0% | 3.20 | 32.00% |
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