Question
1. Compute the company's return on investment (ROI). 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50%
1. Compute the company's return on investment (ROI).
2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the companys ROI?
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a $250,000 increase in average operating assets, with a resulting $200,000 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations.)
Required information (The following information applies to the questions displayed below.] Commercial Services.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 3,000,000 $ 150,000 $ 750,000 The following questions are to be considered independentlyStep by Step Solution
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