Division Q$\text{'}$s current turnover is

$2\mathrm{.}0$

and its return on sales ratio is

$0\mathrm{.}4.$

The division is considering a sales promotion that would increase its current return on sales ratio by

$20\%,$

but decrease its turnover by

$20\%.$

Requirements

$($a$)$

If the division undertakes this promotion, by what percentage would the return on investment increase or decrease?

$($b$)$

If the division undertakes this promotion, by what percentage will the return on sales ratio need to increase in order for the return on investment to increase by

$15\%?$

Question content area bottom

Part $1$

Requirement $($a$)$ If the division undertakes this promotion, by what percentage would the return on investment increase or decrease?

Begin by selecting the labels for the return on investment formula and calculate the return on investment if the promotion is undertaken. $($Enter all amounts to two decimal places, X$.$XX and round the return on investment to three decimal places, X$.$XXX$.)$

Return on sales x Turnover

$=$ Return on investment

x $=$

Part $2$

Now calculate the percentage by which the return on investment increased or decreased. $($Do not round until your final answer, then round the percentage change to two decimal places, X$.$XX$\%.$ Use a minus sign or parentheses for a decrease.$)$

If Division Q undertakes this promotion, the return on investment will change by $\%.$

Part $3$

Requirement $($b$)$ If the division undertakes this promotion, by what percentage will the return on sales ratio need to increase in order for the return on investment to increase by

$15\%?$

$($Do not round until your final answer, then round the percentage increase to two decimal places, X$.$XX$\%.)$

The return on sales ratio will need to increase by $\%$ in order for the return on investment to increase by $15\%.$