August 2011
Beginner
547 pages
16h 12m
English
Solution
Return on investment = profit margin × asset turnover
or 0.30 = x/3,00,000 × 3,00,000/2,00,000
or 0.30 × 3,00,000 = x × 3,00,000/2,00,000
or x = 90,000 × 2,00,000/3,00,000
or x = 60,000
The operating profit has to be raised to Rs 60,000 in order to get ROI of 30%.
Read now
Unlock full access