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Required information Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI (LO10-1) [The following information applies to the questions displayed below. CommercialServices.com
Required information Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI (LO10-1) [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 $ 3,000,000 $ 150,000 $ 750,000 The following questions are to be considered independently. Exercise 10-13 Part 1 Required: Compute the company's return on investment (ROI). Return on investment (ROI) Exercise 10-13 Part 2 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with no increase in average operating assets. What would be the company's ROI? Return on investment (ROI) % Exercise 10-13 Part 3 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a $250,000 increase in average operating assets, with a resulting $200,000 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations.) Return on investment (ROI) %
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