Kaler Company has sales of $$1,410,000,$ cost of goods sold of $$785,000,$ other operating expenses of $$198,000,$ average invested assets of $$4,400,000,$ and a hurdle rate of $11$ 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 scenario independently.$)$

a$.$ Company sales and cost of goods sold increase by $5$ percent.

b$.$ Operating expenses increase by $$83,000.$

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

d$.$ Average invested assets decrease by $$385,000.$

e$.$ Kaler changes its hurdle rate to $8$ percent.

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

Req $1$

Req $2A$

Req $2$B

Req $2E$

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

Note: 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. Loss amount should be indicated with a minus sign.

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