Multiple Questions Answers

1. Compute the Return on Assets Managed (ROAM) for each segment of the business using the following data: 
Accounts Receivable = $3,000,000 
Inventory = $7,000,000 
Contribution Margin = $2,000,000 
Sales = $5,000,000 
A. 0.2 
B. 0.3 
C. 0.4 
D. 0.5 

2. ROAM is: 
A. interchangeable with ROI. 
B. the product of the profit margin on sales. 
C. the result of the profit margin on sales minus inventory turnover. 
D. equal to sales/net profit times total assets used/sales. 

3. To increase the return on assets managed for specific segments, the sales manager can: 
A. raise the profit margin on sales. 
B. increase total sales while decreasing profit margins. 
C. increase the relative dollar value of assets necessary to achieve sales. 
D. conduct sales audits by segments to identify those that are yielding inadequate contribution margins.

4. Marketing cost analysis: 
A. studies total sales volume first. 
B. adds sales revenue to various market segments or organizational units. 
C. investigates the costs incurred and profits generated from sales volume. 
D. is performed entirely by the headquarters marketing team.