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Kaler Company has sales of $1,510,000, cost of goods sold of $810,000, other operating expenses of $223,000, average invested assets of $4.900,000, and a hurdle

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Kaler Company has sales of $1,510,000, cost of goods sold of $810,000, other operating expenses of $223,000, average invested assets of $4.900,000, and a hurdle rate of 12 percent. Required: 1. Determine Kaler's return on investment (RON, investment turnover, profit margin, and residual income. 2. 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) a. Company sales and cost of goods sold increase by 15 percent. b. Operating expenses increase by $88,000. c. Operating expenses decrease by 10 percent. d. Average invested assets decrease by $435,000. e. Kaler changes its hurdle rate to 9 percent. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 20 Reg 2D Reg 2 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.) Average invested assets decrease by $435,000. (Enter your ROI percentage answer to 2 decimal places, (l.e., 0.1234 should be entered as 12.34%.)) Return on Investment Residual Income (Los) 10.68% 5 75,150

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