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

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Kaler Company has sales of $1,230,000, cost of goods sold of $740,000, other operating expenses of $153,000, average invested assets of $3,500,000, and a hurdle 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 answers to 4 decimal places.) Retarn on Investment Investment Turnover Profit Margin Residual Income (Loss) 2. Several possible changes that Kaier could tace in the upcoming year follow Determine each rcenario's impact on Kaler's ROI and resuidual income. (Note: Treat each scenario independentl 2 decimal places, 0.1234 sluld te entered as 1234%. y ) (Enter your ROI percentage answers to a. Company sales and cost of goods sold increase by 10 percent Return on Investment Residual Income (Loss) b. Operating expenses increase by $74,000. Return on Investment Residual Income (Loss) c. Operating expenses decrease by 20 percent. Return on Investment Residual Income (Loss) d. Average invested assets decrease by $295,000. Return on Investment Residual Income (Loss) e. Kaler changes its hurdle rate to 9 percent. Return on Investment 0 Residual Income (Loss)

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