With annual sales of $2,400,000 and operating assets of $1,600,000, Tucker Company achieved a 10 percent ROI.
Question:
Required
a. If Tucker reduces expenses by $40,000 and sales remain unchanged, what ROI will result?
b. If Tucker cannot change either sales or expenses, what change in the investment base is required to achieve the same result you calculated for Requirement a?
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Related Book For 
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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