A-AS Level (CIE) Business Studies Paper-2: Specimen Questions with Answers 51 - 52 of 52

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Case Study- 8

A company has a profit margin of 20 % and asset turnover of 3 times. What is the company՚s return on investment? How will this return on investment vary if?

Question 51 (4 of 5 Based on Passage)

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Short Answer▾

Show how investment will change if profit margin is increased by 5 %

Explanation

Thus, return on investment is

Question 52 (5 of 5 Based on Passage)

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Short Answer▾

Calculate return on investment if asset turnover is decreased to 2 times.

Explanation

If net profit is increased by :

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