The Following Data Pertain to Napal Company for 20x1

question 79

Essay

The following data pertain to Napal Company for 20x1:

Required:
A. Calculate the company's sales margin, capital turnover, and return on investment for 20x1.
B. If the sales and average invested capital remain the same, to what level would total costs and expenses have to be reduced in 20x2 to achieve a 15% return on investment?
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.

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Definitions:

Reinforcement Theory

A psychological theory suggesting that behavior can be shaped by controlling the consequences of that behavior, emphasizing the use of reinforcement, punishment, or extinction to influence workplace behavior.

Expectancy Theory

A psychological theory that postulates an individual's motivation is an outcome of their expectations about their ability to achieve desired performance levels and the perceived rewards for doing so.

Maslow's Theory

Maslow's Theory, or Maslow's Hierarchy of Needs, is a psychological concept that arranges human needs into a hierarchy, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Organizational Citizenship

The voluntary commitment of employees to go beyond their contractual tasks and contribute positively to the organization's culture and business processes.