Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $ 3,900,000 Net operating incone 273,000 Average operating assets $ 780,000 The following questions are to be considered independently. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 60% and that net operating income will increase by 100%, with no increase in average operating assets. What would be the company's ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rehum on investment (ROI) Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income Average operating assets $ 1,500,000 690,000 810,000 435,000 $ 375,000 $ 1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses $420,000 70% of sales $ 252,000 The company's minimum required rate of return is 10%. 7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Margin 62.1 %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started