For each of the following questions, indicate whether the margin and turnover wi

Question

For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the original ROI computed in (1) above.

The company achieves a cost savings of $9,000 per period by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.)

For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the original ROI computed in (1) above.

Explanation / Answer

margin is revenue/sales as cost of goods sold decrease margin increases

as cogs decrease turn over decreases

as gain from investment is more turn over increase

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