Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 3 of 4 - Solve: If the seller invested $2,750,000 to produce this increased service level, what would the Return on Investment be? (Note:

Part 3 of 4 - Solve: If the seller invested $2,750,000 to produce this increased service level, what would the Return on Investment be? (Note: round to 1 decimal point. Do not enter percent sign or commas) Assume an organization's current service level on order fill is as follows: $ 2,750,000Investment 87%targeted service level see part 2 of 4 cash flow lost at 87% service level 75% Current order fill see part 1 of 4 cash flow lost at 75% service level 6000Number of orders per year $ 65% Percent of unfilled orders back-ordered 35% Percent of unfilled orders cancelled 175Back order costs per order 10,000Lost pretax profit per cancelled order Return on Investment Net return divided by the cost of the investment times 100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategy In Managerial Accounting

Authors: Shahid Ansari

1st Edition

0256256225, 978-0256256222

More Books

Students also viewed these Accounting questions

Question

8. Managers are not trained to be innovation leaders.

Answered: 1 week ago