Question

With annual sales of $2,400,000 and operating assets of $1,600,000, Tucker Company achieved a 10 percent ROI.

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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  • CreatedFebruary 07, 2014
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