The peso sales that the division needs in order to reach the 30% ROI target is?...
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The peso sales that the division needs in order to reach the 30% ROI target is? Sample format: 11,111,111 The manager of the generator Division of NUBD Co. expects the following results in 2021 (in millions): Sales Variable costs (60%) Contribution margin Fixed costs Profit Plant equipment Working capital Investment Nat P49.60 29.76 19.84 12.00 P7.84 P19.51 14.88 P34.39 ROI (7.84/34.29) 22.80% The division has a target ROI of 30%. He states that the sales mix is relatively constant so variable costs and equipment should be close to 60% of sales, fixed cost and plant and equipment should remain constant, and working capital (cash, receivables and inventories) should vary closely with sales at a rate of 30%. The peso sales that the division needs in order to reach the 30% ROI target is? Sample format: 11,111,111 The manager of the generator Division of NUBD Co. expects the following results in 2021 (in millions): Sales Variable costs (60%) Contribution margin Fixed costs Profit Plant equipment Working capital Investment Nat P49.60 29.76 19.84 12.00 P7.84 P19.51 14.88 P34.39 ROI (7.84/34.29) 22.80% The division has a target ROI of 30%. He states that the sales mix is relatively constant so variable costs and equipment should be close to 60% of sales, fixed cost and plant and equipment should remain constant, and working capital (cash, receivables and inventories) should vary closely with sales at a rate of 30%.
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Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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