What is the impact of this proposed reduction on margin


For a recent operating period, the Bayside Division of Fairhaven Corporation had sales of $400,000, net operating income of $30,000 (cost of goods sold is $250,000 and operating expenses are $120,000), and average operating assets of $320,000. Several Bayside managers have developed a plan to reduce operating expenses by 10%. What is the impact of this proposed reduction on margin, turnover, and ROI?

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Accounting Basics: What is the impact of this proposed reduction on margin
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