Investing $1,500,000 in TQM's Channel Support Systems initiative will at the minimum raise demand for your products 1.7% in this and in all future rounds. (Refer to TQM Initiative worksheet in CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,290,917. Supposing similar sales next year, the 1.7% raise in demand will provide $2,775,946 of additional revenue. With the entire contribution margin of 34.1%, after direct costs this revenue will add $946,598 to the bottom line. For simplicity, suppose that the demand raise and margins will remain at last year's levels. How long will it take to achieve payback on the initial $1,500,000 TQM investment, rounded to the nearest month?
Select: 1
13 months
6 months
19 months
TQM investment will not have a significant financial impact