The Following Information Is Available for Northern Division Required:
A

question 49

Essay

The following information is available for Northern Division: $\begin{array}{ll}\text { Asset base } & \$ 500,000 \\\text { Sales revenues } & \$ 725,000 \\\text { Operating expenses plus cost of goods sold } & \$ 662,500\end{array}$ Required:
A. Calculate the margin, turnover, and ROI.
B. The Northern Division 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 the Northern Division 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:

Menarche

The first occurrence of menstruation in a female, marking a significant milestone in the transition from girlhood to womanhood within the context of physical and reproductive development.

Ovulation

Ovulation is a phase in the female menstrual cycle where an egg is released from the ovary, making it available for fertilization.

Delayed Circadian Phase

A shift in the sleep–wake pattern in which adolescents tend to stay up later at night than they did as children and then sleep later in the morning.

Circadian Rhythm

The natural internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.