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Forager Ltd

Question 118

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Forager Ltd. is a company that creates various home décor items including faux houseplants, planters, and picture frames. All the items they produce are created using recycled materials, and that has been a major selling point for their customers. The manager of the planter division requested that they look into purchasing a new kiln that will reduce production time and costs while increasing output. The head accountant has compiled the following estimates pertaining to the new kiln: Sales, $4,675; Cost of Goods Manufactured, $1,844; and Operating Expenses (including depreciation), $1,408. The cost of the kiln is estimated to be $9,630. What are the Return on Sales and the Investment Turnover values for a new kiln?

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Return on Sales: 0.3044, Investment Turn...

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