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CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: CommercialServices.com Corporation provides business-to-business services on the $ 5,700,000
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
CommercialServices.com Corporation provides business-to-business services on the $ 5,700,000 Sales Net operating income Average operating assets $ 285,000 $ 950,000 Exercise 11-13 Part 1 Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) 2 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 company's ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 19%3 Return on investment (ROI) 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $2,000,000 increase in sales, requiring a $150,000 increase in average operating assets, with a resulting $388,750 increase in net operating income. What would be the company's ROl in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROStep by Step Solution
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