How long will it take to achieve payback on the initial

Reference no: EM13181378

Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,508,343. Assuming similar sales next year, the 3.0% increase in demand will provide $4,905,250 of additional revenue.With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,672,690 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels.

How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?

Reference no: EM13181378

Questions Cloud

What is the least amount of wrapping paper : What is the least amount of wrapping paper that is needed to wrap a gift box that is 2 feet by 1 foot by 3 feet?

State the radical bromination of methylcyclohexane : Draw the monobromination product that would be obtained from the radical bromination of methylcyclohexane? which product would obtained in greatest yield?

Write sentences describing type l and type ll errors : write sentences describing type l and type ll errors for a hypothesis test-"a hospital spoke person states that 3% of emergency room visits by college graduates are for alcohol related health problems"

Find out value of ksp and show by calculations : Use your experimentally determined value of ksp and show,by calculations, that Ag2CrO4 should precipitate when 5mL of 0.004M AgNO3 are added to 5mL of 0.0024 M K2CrO4.

How long will it take to achieve payback on the initial : How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?

What should the fed do in response to the tax cuts : President Obama recently agreed in December with Republicans in Congress to extend existing tax cuts that were scheduled to expire December 31 and to create new tax cuts as well. Meanwhile, recent reports suggest that the economy may expand more t..

What is the companys cost of equity : What is the company's cost of equity? If the company will pay a constant annual dividend of $2.20 a share, what is the Ortiz's current stock price?

What is the z-score for a value : Assuming that the data are normally distributed with a mean of 45 and a standard deviation of 3.25, what is the z-score for a value of 40?

What percentage of companys capital structure consists debt : The stock's price is currently $32.75; its dividend is expected to grow at a constant rate of 9 percent per year; its tax rate is 40 percent; its WACC is 12.85 percent. What percentage of the company's capital structure consists of debt?

User Account

All Pages