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Kaler company nas saies of dollar.1,410,000. cost of goods sold of dollar 785,000 other operating expenses ot dollar 198,000, average invested assets of dollar 4,400,000,
Kaler company nas saies of dollar.1,410,000. cost of goods sold of dollar 785,000 other operating expenses ot dollar 198,000, average invested assets of dollar 4,400,000, and a hurdle rate of 11 percent Required: Determine Kaler's return on investment (ROI), investment turnover, profit margin, and residual income (Loss amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your "Investment Turnover" answer to 4 decimal places and "Return on Investment" & "Profit Margin" answer to 2 decimal places.) 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.) Company sales and cost of goods sold increase by 5 percent (Loss amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your "Return on Investment" answer to 2 decimal places.) Operating expenses increase by dollar83.000. (Loss amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your "Return on Investment" answer to 2 decimal places.) Operating expenses decrease by 10 percent (Loss amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your "Return on Investment" answer to 2 decimal places.) Average invested assets decreased by dollar385, 000(Loss amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your "Return on Investment" answer to 2 decimal places.) Kaler changes its hurdle rate to 8 percent (Loss amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your "Return on Investment" answer to 2 decimal places.)
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