Question
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: sales=3,000000 Net Operating Income: 150,000 Average operating assets: 750,000
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: sales=3,000000 Net Operating Income: 150,000 Average operating assets: 750,000 Compute the company's margin, turnover and return on investment (ROI). Margin %? Turnover? ROI%? 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? Margin %? Turnover? ROI%? 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? Margin %? Turnover? ROI%?
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