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Kaler Company has sales of $1,210,000, cost of goods sold of $735,000, other operating expenses of $148,000, average invested assets of $3,400,000, and a hurdie

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Kaler Company has sales of $1,210,000, cost of goods sold of $735,000, other operating expenses of $148,000, average invested assets of $3,400,000, and a hurdie rate of 12 percent Required: 1. Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROl and Profit Margin answer to the nearest whole percentage, (i e.. 0.1234 should be entered as 12%). Round your Investment Turnover answer to 4 decimal places.) Answer is complete but not entirely correct. Return orn 10.1% 0.3500 |$81,0000| nvestment Turnover Profit Margin Residual income 2. Several possible changes that Kaler could face in the upcoming each scenario's impact on Kaler's ROI and residual income. (Note: Treat each scenario independently ) (Enter your ROI percentage answers to 2 decimal places, (ie, 0.1234 should be entered as 12.34%)) year follow Determine a. Company sales and cost of goods sold increase by 15 percent Answer is complete and correct Return orn 11.71 01 % Residual Income 9.750) b. Operating expenses increase by $73,000. Answer is complete but not entirely correct. Return on Investment Residual Income Loss) 7.47 0 1 % 154,000 c. Operating expenses decrease by 10 percent. Answer is complete and correct. Return on investment | 10.00 % Residual Income (Loss) (66,200) d. Average invested assets decrease by $285,000. Answer is complete and correct. Return on Investment Residual Income (Loss) 10.50 e 1% (46,800) e. Kaler changes its hurdle rate to 9 percent 3 Answer is complete but not entirely correct. Return orn Investment Residual Income Loss) 9.60 % s (21,000)

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