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Kaler Company has sales of $ 1 , 5 7 0 , 0 0 0 , cost of goods sold of $ 8 2 5

Kaler Company has sales of $1,570,000, cost of goods sold of $825,000, other operating expenses of $238,000, average invested
assets of $5,200,000, 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 scenario independently.)
a. Company sales and cost of goods sold increase by 15 percent.
b. Operating expenses increase by $91,000.
c. Operating expenses decrease by 20 percent.
d. Average invested assets decrease by $465,000.
e. Kaler changes its hurdle rate to 9 percent.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2A
Req 2B
Req 2E
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 15 percent.
Note: Enter your ROI percentage answer to 2 decimal places, (i.e.,0.1234 should be entered as 12.34%.). Loss amount
should be indicated with a minus sign. Complete this question by entering your answers in the tabs below.
Req 1
Req 2D
Req 2E
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.,0.1234 should be entered as 12.34%.)
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