Kaler Company has sales of $$1,270,000,$ cost of goods sold of $$750,000,$ other operating expenses of $$163,000,$ average invested

assets of $$3,700,000,$ and a hurdle rate of $12$ percent.

Required:

Determine Kaler's return on investment $($ROI$),$ investment turnover, profit margin, and residual income.

Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI and

residual income. $($Note: Treat each scenario independently.$)$

a$.$ Company sales and cost of goods sold increase by $15$ percent.

b$.$ Operating expenses increase by $$76,000.$

c$.$ Operating expenses decrease by $20$ percent.

d$.$ Average invested assets decrease by $$315,000.$

e$.$ Kaler changes its hurdle rate to $9$ percent.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2E$

Determine Kaler's return on investment $($ROI$),$ investment turnover, profit margin, and residual income. $($Do not round your

intermediate calculations. Enter your ROI and Profit Margin answers to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as

$12\mathrm{.}34\%).$ Round your Investment Turnover answer to $4$ decimal places.$)$