Craycraft Incorporated Reported the Following Results from Last Year's Operations

question 204

Essay

Craycraft Incorporated reported the following results from last year's operations:
At the beginning of this year, the company has a $800,000 investment opportunity with the following characteristics:
Required:
1. What was last year's margin? (Round to the nearest 0.1%.)
2. What was last year's turnover? (Round to the nearest 0.01.)
3. What was last year's return on investment (ROI)? (Round to the nearest 0.1%.)
4. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall margin this year? (Round to the nearest 0.1%.)
5. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall turnover this year? (Round to the nearest 0.01.)
6. If the company pursues the investment opportunity and otherwise performs the same as last year, what will be the overall return on investment will this year? (Round to the nearest 0.1%.)

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Definitions:

Gross Earnings

The total income earned by an individual or business before any deductions or taxes.

Commission Rate

The percentage of a sale price paid to the salesperson or agent responsible for the transaction.

Monthly Quota

Monthly Quota is a specified, quantifiable goal that a person or organization is expected to reach within a month, often used in sales and production.

Gross Pay

Gross Pay refers to the total amount of money earned by an employee before any deductions are made for taxes, benefits, or other withholdings.