Solution-How much would the gross margin percentage have to

How much would the gross margin percentage have to increase

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Reference no: EM132620435

Last year Cadillaca Limited. reported the following results:

Sales $3,450,000

Cost of Goods Sold 1,870,000

Operating Expenses 530,000

Assets 4,182,225

Required:

Question a. Using the DuPont method calculate the company's return on investment for the year just ended.

Question b. Assuming the company's sales, operating expenses, and assets remain the same as last year, by how much would the gross margin percentage have to increase to achieve a 20% return on investment?

Question c. Assume the company sets a minimum required return of 13%, what would the residual income be?

Reference no: EM132620435

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How much would the gross margin percentage have to increase

Reference no: EM132620435

Reference no: EM132620435

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