Answered step by step
Verified Expert Solution
Question
1 Approved Answer
*** NO EXPLANATION ARE REQUIRED. PROVIDE THE ANSWERS ONLY *** The contribution-format income statement for Fulcrum Limited for its most recent period is given below:
*** NO EXPLANATION ARE REQUIRED. PROVIDE THE ANSWERS ONLY ***
The contribution-format income statement for Fulcrum Limited for its most recent period is given below: the company had average operating assets of $500,000 during the period. Compute the company's return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Omit the "%" sign in your response.) ROI % 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. the company achieves cost savings of S10.000 per period by using less costly materials. (Omit the "%" sign in your response.) Using lean production, the company is able to reduce the average level of inventory by $100.000. (The released funds are used to pay off bank loans.) (Round your "turnover" answer to 1 decimal place. Omit the "%" sign in your response.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started