BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
Sales.............................$ 8,000,000
Net operating income.........$ 800,000
Average operating assets.....$ 3,200,000
Required:
1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Omit the "%" sign in your response.)
The entrepreneur who founded the company is convinced that sales will increase next year by 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the company's 2019s ROI? (Do not round intermediate calculations. Omit the "%" sign in your response.)
The Chief Financial Officer of the company believes a more realistic scenario would be a $2 million increase in sales, requiring an $800,000 increase in average operating assets, with a resulting $250,000 increase in net operating income. What would be the company's 2019s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)