Question
Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) The entrepreneur who founded
Required:
1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 210%, with no increase in average operating assets. What would be the companys ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The Chief Financial Officer of the company believes a more realistic scenario would be a $1,500,000 increase in sales, requiring a $375,000 increase in average operating assets, with a resulting $426,250 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Required information (The following information applies to the questions displayed below.) CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ $ $ 3,400,000 272,000 850,000 The following questions are to be considered independently. Required: 1. Compute the company's return on investment (ROI). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI)Step by Step Solution
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