Question
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$4,100,000Net operating income$164,000Average operating assets$820,000
The following questions are to be considered independently.
Garrison 16e Rechecks 2019-01-10
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?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,350,000 increase in sales, requiring a $270,000 increase in average operating assets, with a resulting $203,875 increase in net operating income. What would be the company's ROI in this scenario?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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