The peso sales that the division needs in order to reach the 30% ROI target is The manager of the generator Division of NUBD Co. expects the following results in2021 (in millions):SalesVariable costs (60%)Contribution marginFixed costsProfitP49.6029.7619.8412.00P7.84Plant equipmentWorking capitalInvestmentP19.5114.88P34.39ROI (7.84/34.29)22.80%The division has a target ROl of 30%. He states that the sales mix is relativelyconstant so variable costs and equipment should be close to 60% of sales, fixed costand 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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Description: The peso sales that the division needs in order to reach the 30% ROI target is The manager of the generator Division of NUBD Co. expects the following results in2021 (in millions):SalesVariable costs (60%)Contribution marginFixed costsProfitP49.6029.

ROI is one of the profitability measures used by the business to analyze and review profitability.…

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Business

Accounting

The peso sales that the division needs in order to reach the 30% ROI target is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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