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Exercise 9-6 Effects of Changes in Sales, Expenses, and Assets on ROI [L01] [The following information applies to the questions displayed below.] BusServ.com Corporation provides

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Exercise 9-6 Effects of Changes in Sales, Expenses, and Assets on ROI [L01] [The following information applies to the questions displayed below.] BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Consider each question below independently. Exercise 9-6 Part 1 Required: Compute the company's margin, turnover and return on investment (ROI). (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Exercise 9-6 Part 2 The entrepreneur who founded the company is convinced that sales will increase next year by 130% and that net operating income will increase by 360%, with no increase in average operating assets. What would be the company's margin, turnover and ROI? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Exercise 9-6 Part 3 The Chief Financial Officer of the company believes a more realistic scenario would be a $3.0 million increase in sales, requiring an $1,146.667 increase in average operating assets, with a resulting S472.960 increase in net operating income. What would be the companys margin, turnover and ROI in this scenario? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Exercise 9-7 Contrasting Return on Investment (ROI) and Residual Income [L01, L02) Rains Nickless Ltd. of Australia has two divisions that operate in Perth and Darwin. Selected data on the two divisions follow: Required: Compute the return on investment (ROI) for each division. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 14%. Compute the residual income for each division. Is the Darwin Division's greater residual income an indication that it is better managed? Yes No

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