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Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed below.] CommercialServices.com Corporation

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Exercise 10-13 (Algo) Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] [The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: The following questions are to be considered independently. Exercise 10-13 Part 3 (Algo) The Chief Financial Officer of the company believes a more realistic scenario would be a $1,250,000 increase in sales, requiring a $112,500 increase in average operating assets, with a esulting $440,000 increase in net operating income. What would be the company's ROI in this cenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $420,000 on sales of $1,600,000. The company's average operating assets for the year were $1,800,000 and its minimum required rate of return was 16%. Required: Compute the company's residual income for the year

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