Question: 1 a . An organization has $ 1 0 0 M in revenues, purchases of 7 2 , and a pre - interest and pre

1a. An organization has $100M in revenues, purchases of 72, and a pre-interest and pre-tax profit of $8M (NIBIT). Determine the % improvement in profit (NIBIT) if purchase costs were reduced by 10%. Round your answer to one decimal place, if applicable.
1b. Refer to the figure below for initial performance numbers.
ROA Relationship Tree.jpg
A reduction of 12.4% on purchases was achieved by the purchasing group. What is the resulting ROA?
Enter your answer as a percentage without symbols. Round your result to 1 decimal place, if applicable. (15.76% is entered as 15.8)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!