Commercial Division Profit Margin: 10% Invesment Turnover: 1.2 ROI: 12% If the Commercial Division were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the president’s required 16.00% return on investment? Enter your increase in investment turnover answer as a percentage of current investment turnover. If required, round your intermediate and final answers to two decimal places.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Profit Margin: 10%
Invesment Turnover: 1.2
ROI: 12%
If the Commercial Division were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the president’s required 16.00%
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