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E10-6 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Asset, Hurdle Rate on Each LO 10-4, 10-5 Kaler Company

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E10-6 Calculating Return on Investment, Residual Income, Determining Effect of Changes in Sales, Expenses, Invested Asset, Hurdle Rate on Each LO 10-4, 10-5 Kaler Company has sales of $1,210.000, cost of goods sold of $735,000, other operating expenses of $148,0, average invested assets of $3,400,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (ROI), i Margin answer to the nearest whole percentage, e, r, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit 0.1234 should be entered as 1 nt Turnover answer to 4 decimal places.) 0.3500 Residual in ore (Loss)$(81,000) er could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario 1234 should be entered as 12.34%. i e independently Enter your ROI percentage answers to 2 decimal places a. Company sales and cost of goods sold increase by 15 percent. b. Operating expenses increase by $73,000. Return on Investment Residual Income (Loss) c. Operating expenses decrease by 10 percent Return on Investment Residual Income (Loss) d. Average invested assets decrease by $285,000. Return on Investment Residual Income (Loss)

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