Question
Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] Skip to question [The following information applies to the questions displayed below.]
Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] Skip to question [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: Sales $ 5,220,000 Net operating income $ 261,000 Average operating assets $ 870,000 The following questions are to be considered independently. Brewer 8e Rechecks 2019-01-10 Exercise 10-13 Part 3
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,600,000 increase in sales, requiring a $494,000 increase in average operating assets, with a resulting $335,750 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started