Answer: Return on sales is calculated based on sales volume and not profit
Explanation:
This can be explained by understanding the scenario; the price that discounters pay is lower than any other channel. Discounters have high variable cost, they only pay $52 for the Russel with 41percent return on sales. They also larger fixed costs than the other channels and the return on sales is calculated based on sales volume and not profit.
The appropriate response is suspect samples. Ensure the specimen estimate is sufficiently huge and stays away from the predisposition of any sort. Examine the way in which the subjects in the example were chosen. At the point when comes about are translated from thinks about utilizing little examples, comfort tests, or volunteer specimens, care ought to be utilized as a part of summing up the outcomes to the whole populace.
Available Options Are:
a. Increasing ROIC by increasing return on sales
b. Decreasing ROIC by increasing return on sales
c. Decreasing ROIC by decreasing return on sales
d. Increasing ROIC by decreasing return on sales
Answer:
Option C. Decreasing ROIC by decreasing return on sales
Explanation:
The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:
ROCI = Operating Income (1 - Tax Rate) / Book Value of Invested Capital
As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numenator would be decreased and as a result the ROCI would decrease.
It is the Bar chart. Bar charts are helpful for looking at related things, delineating changes in information after some time, and demonstrating portions as a major aspect of an entirety. A reference chart indicates correlations among discrete classes. One hub of the outline demonstrates the particular classifications being analyzed, and alternate pivot speaks to a deliberate esteem. Some visual charts exhibit bars bunched in gatherings of more than one, demonstrating the estimations of more than one quantified variable.