Answer:
14 Months
Explanation:
Last year’s sales = $163,508,343
As per the given data next year sales is increased by 3.0%.
= 0.03 * $163,508,343 = $4,905,250.29 ~= $4,905,250
Revenue added to the bottom line = 34.1% of increased demand
= 0.341 * $4,905,250 = $1,672,690.25~= $1,672,690
TQM investment = $2,000,000
Payback = (Investment in TQM / Revenue added to the bottom line) * 12
= ($2,000,000 / $1,672,690) * 12 = 14.34 ~= 14 Months
Hope this helps!
