Leader

Outline solutions to session 3 exercises 1.

| |P |L |C | |Sales |£200,000 |£120,000 |£180,000 | |Profit in front interest |£12,000 |£7,200 |£5,400 | |Capital agile |£50,000 |£60,000 |£45,000 | | | | | | |Return on seat of government employed |24% |12% |12% | | operational returns margin |6% |6% |3% | |Asset disturbance |4 multiplication |2 times |4 times | L and C train to bring their performance up to Ps eat L by improve addition management and C by improving shekels margins. 2. A Limited and B Limited Return on upper-case letter employed (ROCE) A is earning a high ROCE, despite a trim down operating margin. because A must be achieving a high asset perturbation rate. This conclusion is backed up by the high unyielding asset turnover. Gross margin A earns a high take in margin, and therefore is trading much valueably with customers. They could be charging high prices to customers, but the earlier salary of creditors may ungenerous that they atomic number 18 being charged frown supply prices. Operating profit margin A earns a lower margin, therefore the prefer gained at the gross profit level is lost. A incurs higher overhead payments than B. Rented premises? (they do postulate lower fixed assets). rung be? Advertising costs? (It is possible that A has higher selling prices [note higher gross margin], which need more...If you indirect necessitate to get a teeming essay, order it on our website: Ordercustompaper.com

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