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CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 14,350,000 Net operating income $ 1,061,900 Average

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 14,350,000 Net operating income $ 1,061,900 Average operating assets $ 4,100,000.

Required:
1.

Compute the company's margin, turnover and return on investment (ROI). (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.))

2.

The entrepreneur who founded the company is convinced that sales will increase next year by 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the companys ROI? (Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34%.))

3.

The Chief Financial Officer of the company believes a more realistic scenario would be a $4,000,000 increase in sales, requiring a $487,500 increase in average operating assets, with a resulting $589,600 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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