Question
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: (Do not round intermediate calculations. Round your answers to
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Sales $ 3,000,000
Net operating income $ 150,000
Average operating assets $ 750,000
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? (Do not round intermediate calculations.)
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. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%).)
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