- Tumover Ready tedtronics is facing competition from imported goods. Its operating income margin has been declining steady for the past several years. The company has been forced to lower prices so that it can manat man har. The operating restor the past 3 years are s o Year 1 Year 2 Year 3 $15.000.000 $9,500,000 $9,000,000 Operating income 1.200,000 1,445,000 45,000 Average 15.000.000 15,000,000 17.250.000 For the coming year Ready's president plans to install purchasing and manufacturing system. She estimates that interes will be reduced by 70% during the first year of operations, producing a 20% reduction in the average rating sets of the company, which would remain unchanged without the IT system. She also estimates that sales and operating income restored to Year 1 levels because of simultaneous reductions in operating expenses and selling prices Lowering prices wilow Ready to expand its market share (Note: Round all numbers to two decimal places.) Required: 1. Compute the ROI margin, and turnover for years 1, 2 and 3 Year Year 2 ON M SOD000 x 900,000, 2. Conceptual Connection Suppose that in Year 4 the sales and operating income were achieved as expected, but inventories Check My Work 2 more Check My Work uses remaining Next > we work saved Emal sarucior Sew and as some sugere for Grading 3 3 3 Hi I BINI 2. Conceptual Connection: Suppose that in Year 4 the sales and operating income were achieved as expected, but inventore remained at the same level as in Year 3. Compute the expected ROT, margin, and turnover. ROL Margin Turnover Why did the ROI increase over the Year 3 level? The Rot increased because expenses decreased and assets turned over at a higher rate (sales increased 3. Conceptual Connection: Suppose that the sales and net operating income for Year 4 remained the same as in Year) but inventory reductions were achieved as projected. Compute the Rot, margin, and turnover Mar Turnover Why did the ROI exceed the Year 3 level? The ROI increased because assets decreased 4. Conceptual Connection: Assume that all expectations for Year 4 were realized. Compute the expected ROR, margin, and turnover ROI Margin Turnover Why did the ROI increase over the Year 3 level? The ROI increased because expenses decreased and assets turned over at a higher rate. Check My Work 2 more Check My Work uses remaining All work waved Emai mare Sovet Sone Augenert for Gratis - Tumover Ready tedtronics is facing competition from imported goods. Its operating income margin has been declining steady for the past several years. The company has been forced to lower prices so that it can manat man har. The operating restor the past 3 years are s o Year 1 Year 2 Year 3 $15.000.000 $9,500,000 $9,000,000 Operating income 1.200,000 1,445,000 45,000 Average 15.000.000 15,000,000 17.250.000 For the coming year Ready's president plans to install purchasing and manufacturing system. She estimates that interes will be reduced by 70% during the first year of operations, producing a 20% reduction in the average rating sets of the company, which would remain unchanged without the IT system. She also estimates that sales and operating income restored to Year 1 levels because of simultaneous reductions in operating expenses and selling prices Lowering prices wilow Ready to expand its market share (Note: Round all numbers to two decimal places.) Required: 1. Compute the ROI margin, and turnover for years 1, 2 and 3 Year Year 2 ON M SOD000 x 900,000, 2. Conceptual Connection Suppose that in Year 4 the sales and operating income were achieved as expected, but inventories Check My Work 2 more Check My Work uses remaining Next > we work saved Emal sarucior Sew and as some sugere for Grading 3 3 3 Hi I BINI 2. Conceptual Connection: Suppose that in Year 4 the sales and operating income were achieved as expected, but inventore remained at the same level as in Year 3. Compute the expected ROT, margin, and turnover. ROL Margin Turnover Why did the ROI increase over the Year 3 level? The Rot increased because expenses decreased and assets turned over at a higher rate (sales increased 3. Conceptual Connection: Suppose that the sales and net operating income for Year 4 remained the same as in Year) but inventory reductions were achieved as projected. Compute the Rot, margin, and turnover Mar Turnover Why did the ROI exceed the Year 3 level? The ROI increased because assets decreased 4. Conceptual Connection: Assume that all expectations for Year 4 were realized. Compute the expected ROR, margin, and turnover ROI Margin Turnover Why did the ROI increase over the Year 3 level? The ROI increased because expenses decreased and assets turned over at a higher rate. Check My Work 2 more Check My Work uses remaining All work waved Emai mare Sovet Sone Augenert for Gratis
