Kaler Company has sales of $$1,370,000,$ cost of goods sold of $$775,000,$ other operating expenses of $$188,000,$ average invested assets of $$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 and residual income. $($Note: Treat each $$cenario 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 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.$)$ Kaler changes its hurdle rate to $9$ percent.

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

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