Question #1 (fill in the blanks): Here is the question: what impact does reducing your employers direct material (DM) costs by 5% have on its ROI (use the numbers on the attachment)? Note, if you reduce your DM costs by 5%, it also reduces your inventory value by 5% (in other words, it will also increase your asset turnover rate so you have to recalculate profit margin and asset turnover rate). Such a cost reduction (5%) would increase profit margins from __% to __% and ROI from 10% to __%? This equals a __ percentage point increase improvement in return on investment for each 1 percentage reduction in material costsHint, (new ROI old ROI)/5. FILL IN BLANKS W ATTACHMENT

Effect of Purchasing Costs on a Manufacturil