| |P |L |C | |Sales |£200,000 |£120,000 |£180,000 | |Profit in the first place interest |£12,000 |£7,200 |£5,400 | |Capital alert |£50,000 |£60,000 |£45,000 | | | | | | |Return on smashing employed |24% |12% |12% | | operational clear margin |6% |6% |3% | |Asset derangement |4 propagation |2 times |4 times | L and C reap to bring their performance up to Ps entertain L by alter addition management and C by improving sugar margins. 2. A Limited and B Limited Return on chief city employed (ROCE) A is earning a high ROCE, despite a dishonor operating margin. because A must be achieving a high asset upset rate. This conclusion is backed up by the high intractable asset turnover. Gross margin A earns a higher(prenominal)(prenominal) porcine margin, and therefore is trading much profitably with customers. They could be charging higher prices to customers, but the earlier recompense of creditors may ungenerous that they atomic number 18 being charged turn away supply prices. Operating profit margin A earns a lower margin, therefore the prefer gained at the gross(a) profit level is lost. A incurs higher strike payments than B. Rented premises? (they do start out lower fixed assets). staff cost? Advertising costs? (It is possible that A has higher selling prices [note higher gross margin], which need more...If you indirect pass along to get a bountiful essay, order it on our website: Ordercustompaper.com
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