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3. Omaha Company provides the following information: Sales Net operating income Average operating assets $8 million 800,000 3.2 million Consider each question independently. Carry out
3. Omaha Company provides the following information: Sales Net operating income Average operating assets $8 million 800,000 3.2 million Consider each question independently. Carry out all computations to two decimal places. Required: a) Compute the company's return on investment. b) The owner is convinced that sales will increase next year by 150% and that net operating income will increase by 100%, with no increase in average operating assets. What would be the company's ROI? c) The chief financial officer of the company believes a more realistic scenario would be a $2 million increase in sales, requiring a $ 800,000 increase in average operating assets, with a resulting $ 500,000 increase in net operating income. What would be the company's ROI in this situation? d) How do you recommend that above b and c options
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