Question: Investing $2,000,000 in TQM’s Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and all future rounds. Looking at the Round 5 Courier for Erie, last year’s sales were $205,656,999. Assuming similar sales for next year, the 1.7% increase in demand will provide $3,496,169 of additional revenue. With the overallShow transcribed image textTranscribed image text: Investing $2,000,000 in TQM’s Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and all future rounds. Looking at the Round 5 Courier for Erie, last year’s sales were $205,656,999. Assuming similar sales for next year, the 1.7% increase in demand will provide $3,496,169 of additional revenue. With the overall contribution margin of 39%, this will add $1,363,506 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year’s levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment rounded to the nearest month? OTQM investments have no significant financial impact 18 Months 24 Months 9 Months
