Solution-Calculate zap return on sales

Calculate zap return on sales

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Reference no: EM132546760

Zap is a retailer that specialises in electrical goods. It is a division of a large retail company. The follow data relate to the most recent year of operations:

Profit $6,000,000

Sales revenue $75,000,000

Average invested capital $30,000,000

Required:

Question 1. Calculate Zap's Return on Sales, Investment Turnover and Return on Investment

Question 2. Use two component ratios to demonstrate two ways in which the manager of Zap could improve ROI, increasing it to 25%. (Assume due to competitive market forces, the sell price and sales quantities cannot be easily increased. i.e. Changes to the amount given for 'sales revenue' is not a valid solution.)

Reference no: EM132546760

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Calculate zap return on sales

Reference no: EM132546760

Reference no: EM132546760

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