The Records for the Venusian Division Show the Following Data

question 17

Essay

The records for the Venusian Division show the following data:

a. What is the margin, turnover, and ROI for Venusian Division?
b. Venusian 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 Venusian 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:

Subunits

Subunits refer to smaller, separately identifiable parts of a larger organization, which can be departments, divisions, or subsidiaries, each responsible for distinct functions or regions.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction, particularly in the United States.

Quality Control

The processes and procedures put in place to ensure that products or services meet defined quality standards.