Kaler Company has sales of $$1,370,000,$ cost of goods sold of $$775,000,$ other operating expenses of $$188,000,$ average inves assets of $$4,200,000,$ 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 Kaler could face in the upcoming year follow. Determine each scenario's impact on Kaler's ROI ant residual income. $($Note: Treat each scenario independently.$)$

a$.$ Company sales and cost of goods sold increase by $10$ percent.

b$.$ Operating expenses increase by $$81,000.$

c$.$ Operating expenses decrease by $10$ percent.

d$.$ Average invested assets decrease by $$365,000$

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

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

Several possible changes 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.$)$ Company sales and cost of goods sold increase by $10$ percent.

Note: Enter your ROI percentage answer to $2$ decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%).$ Loss amount should be indicated with a minus sign.

$\backslash$table$[[$Beturn on investment,$],[$Residual income $($Loss$),]]$

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

a$.$ Company sales and cost of g$$ods sold increase by $10$ percent.

b$.$ Operating expenses increase by $$81,000.$

c$.$ Operating expenses decrease by $10$ percent.

d$.$ Average invested assets decrease by $$365,000.$

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

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

Req $1$

Req$2A$

Req $2$B

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

Note: Do not round your intermediate calculations. Enter your ROI and Profit Margin answers to should be entered as $12\mathrm{.}34\%).$ Round your Investment Turnover answer to $4$ decimal places. Lo with a minus sign.

$\backslash$table$[[$Return on Investment,$],[$Investment Turnover,$],[$Profit Margin,$\%$