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sonoma state university Operations And Supply Chain Management Assignment Help - The contribution


Question - The contribution format income statement for Huerra Company for last year is given below:



The company had average operating assets of $2,000,000 during the year.
Required:
1. Compute the company’s return on investment (ROT) for the period using the ROT formula stated in
terms of margin and turnover.
For each of the following questions, indicate whether the margin and turnover will increase, decrease,
or remain unchanged as a result of the events described, and then compute the new ROl figure.
Consider each question separately, starting in each case from the data used to compute the original
ROI in (I) above.
2. Using Lean Production, the company is able to reduce the average level of inventory by $400,000.
(The releas ...Read More

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