Question: Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its


Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its current return on sales ratio by 10%, but decrease its turnover by 10%. Requirements (a) Itthe division undertakes this promotion, by what percentage would the return on investment increase or decrease? [b] Itthe 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 5%? 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, XXXX.) :l x l:| 2 Return on investment Division Q's current turnover is 3.0 and its return on sales ratio is 0.3. The division is considering a sales promotion that would increase its current return on sales ratio by 10%; but decrease its turnover by 10%. Requirements [a] lfthe division undertakes this promotion, by what percentage would the return on investment increase or decrease? [bl 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 5%? Requirement {3] If the division undertakes this promotion, by what percentage would the return on investment 'ncrease 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 |pIlaces. XXXX.) 2 Return on investment Percentage change Rehnntn1sams Sedes Turnover
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