if a firm manages to lower its purchase spend on materials by 10000 then a return on investment

Name: if a firm manages to lower its purchase spend on materials by 10000 then a return on investment increases by 10 b profits before taxes increase by 10000 c cost of goods sold increases by 100 00236
Uploaded: 2022-08-18T16:29:49-08:00
Duration: 2 min 2 s
Channel: Haricharan Gupta
Description: if a firm manages to lower its purchase spend on materials by 10000 then a return on investment increases by 10 b profits before taxes increase by 10000 c cost of goods sold increases by 100 00236

Question

Haricharan Gupta · Accepted Answer

Step 1: Identify the item affected — "purchase spend on materials" is a cost that, when material

Question

If a firm manages to lower its purchase spend on materials by $10,000 then: a. Return on investment increases by 10% b. Profits before taxes increase by $10,000 c. Cost of goods sold increases by $10,000 d. Stockholders equity increases 20%

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