Elton Industries desires a return on sales of 20%. Their current sales revenue is $10,000,000 and their current return on sales is 15%. Assuming sales remain the same, to achieve their desired target profit, they must reduce their costs by
A. $ 500,000
B. $1,500,000
C. $2,000,000
D. none of the above
Answer:A
Elton Industries desires a return on sales of 20%. Their current sales revenue is $10,000,000 and their current return on sales is 15%. Assuming sales remain the same, to achieve their desired target profit, they must reduce their costs by
A. $ 500,000 B. $1,500,000 C. $2,000,000 D. none of the above