Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your sales. Your total cost is $800k Inventory accounts for 20% of total assets. If purchase cost reduces by 10% inventory reduces by 10 % too, What will be% change in ROA ? If you show calculations - partial points will be awarded if wrong

Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your sales. Your total cost is $800k Inventory accounts for 20% of total assets. If purchase cost reduces by 10% inventory reduces by 10 % too, What will be% change in ROA ? If you show calculations - partial points will be awarded if wrong

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

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