Kaler Company has sales of $$1,470,000,$ cost of goods sold of $$800,000,$ other operating expenses of $$213,000,$ average invested assets of $$4,700,000,$ 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 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 $$86,000.$

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

d$.$ Average invested assets decrease by $$415,000.$

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$2C$

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 $12,34\%).$ Round your Investment Turnover answer to $4$ decimal places. Loss amount should be indicated