Question
BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 11,880,000 Net operating income $ 1,069,200 Average
BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
Sales | $ | 11,880,000 |
Net operating income | $ | 1,069,200 |
Average operating assets | $ | 2,700,000 |
Consider each question below independently.
The entrepreneur who founded the company is convinced that sales will increase next year by 160% and that net operating income will increase by 420%, with no increase in average operating assets. What would be the companys margin, turnover and ROI? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
3.
The Chief Financial Officer of the company believes a more realistic scenario would be a $3.0 million increase in sales, requiring an $1,020,000 increase in average operating assets, with a resulting $671,760 increase in net operating income. What would be the companys margin, turnover and ROI in this scenario? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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