Question: DiviSion Q's current turnover is 25 and its return on sales ratio is 15 The division is considering a sales promotion that would increase its


DiviSion Q's current turnover is 25 and its return on sales ratio is 15 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) lfthe lelSlOn undertakes this promotion: by what percentage would the return on investment increase or decrease? (b) lfthe 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 12%? Requirement (3] 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, XXX and round the return on investment to three decimal places, X XXX ) Return on investment X x , ll' DiviSion Q's current turnover is 2.5 and its return on sales ratio is 1.5 The diVISIOn is considering a sales promotion that wouid increase its current return on sales ratio by 20%. but decrease its turnover by 20% Requirements (a) Ifthe division undertakes this promotion by what percentage would the return on investment increase or decrease? (b) Ifthe division undertakes this promotion by what percentage Wili the return on sales ratio need to increase in order for the return on investment to increase by 12%? Requirement {a} It the diVision undertakes this promotion by what percentage wouid the return on investment increase or decrease? Begin by seiecting the labeis tor the return on investment formuia and caicuiate the return on investment if the promotion is undertaken (Enter ali amounts to two deCImai places, XXX and round the return on investment to three desimal piaces, X XXX) V x : Return on investment Percentage change Return on sales Sales Turnover
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