RiverRun Catering serves local families while changing supplier; the case evidence includes gross profit margin of ?5,191, sales of 176 units, and a 18% change in costs or demand. Explain how the business should respond to Calculate average rate of return for business investment projects.

Separate the trade-offs before concluding. Apply investment, average rate of return to RiverRun Catering serves local families while changing supplier, then explain how the decision changes average order value, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for shareholders, uses figures such as ?8,591 or 18%, and reaches a supported judgement based on the business objective.

Build the answer from the scenario. This explanation is anchored to Average rate of return and Financial terms and calculations because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates break-even and profit, which helps the final judgement stay precise.