Managing Return on Investment: Implications for Pricing, Volume, and Funds Flow |
Contents
Understanding and Setting the Target ROI | 1 |
Target ROI and Earnings Retention Ratio | 6 |
Target Growth and External Funding | 12 |
Copyright | |
8 other sections not shown
Common terms and phrases
40 percent 40-percent target 40-percent target-ROI price A(EBIT A(Funds A(Total assets absorption costing accounts receivable turnover achieve assume capital cash flow change in volume chapter constant corporate costs increase current assets current liabilities debt ratio decisions decrease depreciation discount division EBIT FIFO figure firm fixed assets fixed costs fixed investment fixed manufacturing costs funds flow given growth rate illustrated in-process and finished income increase in fixed increase in volume incremental price incremental volume initial inventory turnover level of volume maintain ROI maintain the target materials and purchased million units operating managers output P₂ production purchased components raw materials reduce relation relationship return on sales revenue selling expenses ROI price S,G,&A expenses target price target ROI target-ROI method target-ROI model taxes tion total assets unit variable selling unit volume variable cost variable manufacturing costs variable revenue selling variable selling expenses Volume Millions volume required yield ΔΡ