WGW@KGDS@HOM @SVQGSCUGQMUUUUCcUUUCCCCUCCUC G+ https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/act... An Chapter 3 Problems (Unlimited Attempts) Saved Help Save & Exit 4 10 points 01:48:14 Print References Charlie's Furniture Store has been in business for several years. The firm's owners have described the store as a "high-price, high- service" operation that provides lots of assistance to its customers. Margin has averaged a relatively high 40% per year for several years, but turnover has been a relatively low 0.6 based on average total assets of $3,000,000. A discount furniture store is about to open in the area served by Charlie's, and management is considering lowering prices to compete effectively. Required: a. Calculate current sales and ROI for Charlie's Furniture Store. b. Assuming that the new strategy would reduce margin to 30%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROI as Charlie's currently carns. c. Suppose you presented the results of your analysis in parts a and b of this problem to Charlie, and he replied. "What are you telling me? If I reduce my prices as planned, then I have to Increase my sales volume by 50% to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required? d. Now suppose Charlie says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better Identify who my target customer groups are." In general, explain to Charlle what the likely Impact of a successful strategy of this nature would be on margin, turnover, and ROI. e. What are the other alternative strategy that might help Charlie maintain the competitiveness of his business. 82F Mc Graw Hill Clear Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate current sales and ROI for Charlie's Furniture Store. (Round your "ROI" to 1 decimal place.) Sales Submit Check my work < Prev 4 of 4 Next 10:10 PM 6/13/2022 WGW@KGDS@HOM @SVQGSCUGQMUUUUCcUUUCCCCUCCUC G+ https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/act... An Chapter 3 Problems (Unlimited Attempts) Saved Help Save & Exit Submit 4 a. Calculate current sales and ROI for Charlie's Furniture Store. 10 points 01:47:44 cBook Print References b. Assuming that the new strategy would reduce margin to 30%, and assuming that average total assels would slay the same, calculate the sales that would be required to have the same ROI as Charlie's currently earns. c. Suppose you presented the results of your analysis In parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to increase my sales volume by 50% to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required? d. Now suppose Charlie says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better identify who my target customer groups are." In general, explain to Charlie what the likely impact of a successful strategy of this nature would be on margin, turnover, and ROI. e. What are the other alternative strategy that might help Charlle maintain the competitiveness of his business. Complete this question by entering your answers in the tabs below. 82F Clear Mc Graw Hill Required A Required B Required C Required D Required E Calculate current sales and ROI for Charlie's Furniture Store. (Round your "ROI" to 1 decimal place.) Sales ROI % < Required A Required B > Check my work < Prev 4 of 4 Next > 10:11 PM 6/13/2022 WGW@KGDS@HOM @SVQGSCUGQMUUUUCcUUUCCCCUCCUC G+ https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/act... An Chapter 3 Problems (Unlimited Attempts) Saved Help Save & Exit 4 a. Calculate current sales and ROI for Charlie's Furniture Store. 10 points 01:47:18 cBook b. Assuming that the new strategy would reduce margin to 30%, and assuming that average total assels would slay the same, calculate the sales that would be required to have the same ROI as Charlie's currently earns. c. Suppose you presented the results of your analysis In parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to increase my sales volume by 50% to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required? d. Now suppose Charlie says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better identify who my target customer groups are." In general, explain to Charlie what the likely impact of a successful strategy of this nature would be on margin, turnover, and ROI. e. What are the other alternative strategy that might help Charlle maintain the competitiveness of his business. Print References 82F Clear Mc Graw Hill Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Assuming that the new strategy would reduce margin to 30%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROI as Charlie's currently earns. (Do not round intermediate calculations.) Sales < Required A Required C > < Prev 4 of 4 Next > Submit Check my work 10:11 PM 6/13/2022 WGW@KGDS@HOM @SVQGSCUGQMUUUUCcUUUCCCCUCCUC G+ https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/act... An Chapter 3 Problems (Unlimited Attempts) Saved Help Save & Exit 4 a. Calculate current sales and ROI for Charlie's Furniture Store. 10 points 01:46:48 Print References b. Assuming that the new strategy would reduce margin to 30%, and assuming that average total assels would slay the same, calculate the sales that would be required to have the same ROI as Charlie's currently earns. c. Suppose you presented the results of your analysis In parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to increase my sales volume by 50% to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required? d. Now suppose Charlie says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better identify who my target customer groups are." In general, explain to Charlie what the likely impact of a successful strategy of this nature would be on margin, turnover, and ROI. e. What are the other alternative strategy that might help Charlle maintain the competitiveness of his business. Complete this question by entering your answers in the tabs below. 82F Clear Mc Graw Hill Required A Required B Required C Required D Required E Suppose you presented the results of your analysis in parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to increase my sales volume by 50% to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required? (Do not round intermediate calculations.) Increase in sales required < Required B Required D > Show less < Prev 4 of 4 Next > Submit Check my work 10:12 PM 6/13/2022 N= WGW@KGDS@HOM @SVQGSCUGQMUUUUCcUUUCCCCUCCUC G+ https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/act... Chapter 3 Problems (Unlimited Attempts) Saved Help An 10 4 market research to Deiter deny who my larger customer groups are. in general, explain to Chane what ine likely impact of a successful strategy of this nature would be on margin, turnover, and ROI. . What are the other alternative strategy that might help Charlie maintain the competitiveness of his business. points Complete this question by entering your answers in the tabs below. 01:46:11 Required A Required B Required C Required D Required F Print References 82F Clear Mc Graw Hill Now suppose Charlle says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better identify who my target customer groups are." In general, explain to Charlie what the likely impact of a successful strategy of this nature would be on margin, turnover, and ROI. Effect on Margin Effect on Tum over Effect on ROI < Required C Required E > Show less < Prev 4 of 4 Next > Save & Exit Submit Check my work 10:12 PM 6/13/2022