Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Fill all the boxes and explain to me how you got the values for them . thank you, Division Q's current turnover is 3.0

Please Fill all the boxes and explain to me how you got the values for them . thank you,

Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its current return on sales ratio by 10%, but decrease its turnover by 10%.? b) If the division undertakes this promotion, by what percentage will the return on sales ratio need to increase in order for the return on investment to increase by 5%?

Requirement (a) If the division undertakes this promotion, by what percentage would the return-on-investment increase or decrease?

Begin by selecting the labels for the return-on-investment formula and calculate the return on investment if the promotion is undertaken. (Enter all amounts to two decimal places, X.XX and round the return on investment to three decimal places, X.XXX.)

Turnover X Return on sales = Return on investment

________ __________ __________

Now calculate the percentage by which the return on investment increased or decreased. (Do not round until your final answer, then round the percentage change to two decimal places, X.XX%. Use a minus sign or parentheses for a decrease.).

If Division Q undertakes this promotion, the return on investment will change by ________ %

Requirement (b) If the division undertakes this promotion, by what percentage will the return on sales ratio need to increase in order for the return on investment to increase by

5%?

(Do not round until your final answer, then round the percentage increase to two decimal places, X.XX%.).

The return on sales ratio will need to increase by ________ % in order for the return on investment to increase by 5%.

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

For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th Edition

1305280768, 9781305280762

More Books

Students also viewed these Accounting questions

Question

Define and discuss the nature of communication

Answered: 1 week ago

Question

Define and discuss the nature of culture

Answered: 1 week ago