The following data pertain to Coronation Computer Sales for 2012: Required:
A. Calculate the company's sales margin, capital turnover, and ROI for 2012.
B. If the sales and average invested capital remain the same, to what level would total costs and expenses have to be reduced in 2013 to achieve a 10% ROI?
C. Assume that costs and expenses are reduced, as calculated in requirement "B." Calculate the firm's new sales margin.
D. Suggest two possible actions that will improve the company's capital turnover.
Correct Answer:
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D. Capital turnov...
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