Question
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 14,040,000 Net operating income $ 1,193,400 Average
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: |
Sales | $ | 14,040,000 |
Net operating income | $ | 1,193,400 |
Average operating assets | $ | 5,200,000 |
. | 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 ROI? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) |
The Chief Financial Officer of the company believes a more realistic scenario would be a $4,000,000 increase in sales, requiring a $2,016,000 increase in average operating assets, with a resulting $754,920 increase in net operating income. What would be the companys ROI in this scenario? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34) |
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