Given the Following Information for the Zenith Division $\begin{array}{ll}\text { Asset base } & \$ 500,000 \\\text { Sales Revenues } & \$ 725,000 \\\text { Expenses } & \$ 662,500\end{array}$

question 89

Essay

Given the following information for the Zenith Division:
$\begin{array}{ll}\text { Asset base } & \$ 500,000 \\\text { Sales Revenues } & \$ 725,000 \\\text { Expenses } & \$ 662,500\end{array}$
a.What are the margin,turnover,and ROI for Zenith Division?
b.Zenith has an option to make an additional investment that would add $100,000 to the asset base.It would generate an additional $50,000 in sales revenue and no additional expenses.What would be the effect on margin,turnover,and ROI?
c.Another alternative (independent of alternative 'b')for Zenith is to run an advertising campaign that would require additional advertising expenses of $37,500,but the best estimate is the campaign would generate an additional $75,000 of revenue.What would be the effect on margin,turnover,and ROI?

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Definitions:

Function

An action or activity assigned to or expected from a person or thing.

Epidermis

The outermost layer of the skin, serving as a protective barrier against environmental hazards.

Lamellated Corpuscle

A nerve ending found in the skin and other tissues that is sensitive to pressure and vibration, also known as a Pacinian corpuscle.

Arrector Pili Muscle

A small muscle attached to hair follicles in mammals, responsible for causing hairs to stand up when the organism is cold or frightened.