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CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 12,000,000 Net operating income $ 876,000 Average

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:

Sales $ 12,000,000
Net operating income $ 876,000
Average operating assets $ 4,000,000

5.

Required information

Required:
1.

Compute the company's margin, turnover and return on investment (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).)

Margin = %

Turnover=

ROI = %

The entrepreneur who founded the company is convinced that sales will increase next year by 140% and that net operating income will increase by 380%, 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).)

Margin = %

Turnover=

ROI = %

The Chief Financial Officer of the company believes a more realistic scenario would be a $3,000,000 increase in sales, requiring a $687,500 increase in average operating assets, with a resulting $324,000 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).)

Margin = %

Turnover=

ROI = %

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