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Kaler Company has sales of $1,230,000 cost of goods sold of $740,000 other operating exspenses of $153,000 average invested assets of 3,500,000 and a hurdle

Kaler Company has sales of $1,230,000 cost of goods sold of $740,000 other operating exspenses of $153,000 average invested assets of 3,500,000 and a hurdle rate of 12%.

Q1: Determine kaler's return on investment (ROi) investment turn over, profit margin, and residual income.

Return on Investment: ?%, Investment turnover: ?, Profit margin: ?%, Residual income(loss): ?

Q2: Several possible changes that Kaler could face in the upcoming year follow. Determine each scenaro's impact on Kaler's ROi and residual income.(treat each scenario independently.)

2A: Company sales and COG's increase by 10%. (Return on investment: ?%) Residual income(loss): ?

2B: Operating exspenses increase by $74,000 (Return on investment: ?%) Residual income(loss): ?

2C: Operating exspenses decrease by 20% (Return on investment: ?%) residual income(loss): ?

2D: Average invested assets decrease by $ 295,000 (Return on investment: ?%) Residual income(loss): ?

2E: Kaler changes its hurdle rate to 9 % (return on investment: ?%) Residual income(loss): ?

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