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Business, 27.06.2020 23:01 lifewseth

Investing $1,500,000 in TQM's Channel Support Systems will at a minimum increase demand for your products 1.7 % in current and all future years. If sales for the company in year three is $163, 290,917 and assuming similar sales next year, the 1.7 % increase in demand will provide $2, 775, 946 in additional revenue. With the overall contribution margin of 34.1% after direct costs, this revenue will add $946, 598 to the bottom line. For simplicity assume that the demand increases 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

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