Solution-What level would total costs and expenses have to

What level would total costs and expenses have to be reduced

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Reference no: EM132837281

Question - The following data pertain to ABC Company for 2019:

Sales revenue $1,200,000

Cost of goods sold 650,000

Operating expenses 500,000

Average invest capital 600,000

Required -

A. Calculate the company's sales margin, capital turnover, and return on investment for 2019.

B. If the sales and average invested capital remain the same, to what level would total costs and expenses have to be reduced in 2019 to achieve a 15% return on investment?

C. Assume that costs and expenses are reduced, as calculated in requirement "B." Calculate the firm's new sales margin.

Reference no: EM132837281

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What level would total costs and expenses have to be reduced

Reference no: EM132837281

Reference no: EM132837281

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