Calculate Sales With Return On Investment And Asset Turnover Ratio


1. Red Pty Ltd is concluding a review of its current strategies. Which of the following statements would be a valid explanation of why current strategies may not meet objectives?

I. The business environment is dynamic.

II. the product life cycle suggests that over time, most products will go into decline.

III. Value chain analysis has identified areas of poor performance that must be improved to meet objectives.

IV. A strategic audit reveals that the organization has not effectively matched its internal weakness with outside opportunities.

A. I and IV only
B. II and III only
C. I, II and III only
D. I, II, III and IV

2.  Gravy Pty Ltd reported a return on investment of 18 percent, an asset turnover of six times and a net profit of $450,000. On the basis of this information, the company’s sales for the period were:

A. $486,000
B. $2500,000
C. $2700,000
D. $15,000,000


These multiple choice questions belong to Corporate Strategy and the 1st question discusses about why present strategies are not working for a company and the 2nd question is about calculating the sales with return on investment and asset turnover ratio.

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