16 Oct 2020
The following data for Auto Parts, LLC provided. ORIGINAL DATA
Revenue: $770,000
Invoices: 50,000
Units Sold: 100,000
Variable Costs: $300,000 Fixed Costs: $150,000 Interest Expense $50,000 Asset Investment: $800,000 Assume no Income Taxes
You believe that ROAI can be increased by 10% (e.g., from 20% to 30%)from the calculated ROAI above in Q14. How much would you have to increase price per Invoice to obtain the increase % ROAI? (percentage change, assume all other variables remain constant as shown in ORIGINAL DATA above). (Show work) (5 points)