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Solano Company has sales of $640,000, cost of goods sold of $440,000, other Required Margin percentage answer to the nearest 2 dec operating expenses of

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Solano Company has sales of $640,000, cost of goods sold of $440,000, other Required Margin percentage answer to the nearest 2 dec operating expenses of $52,000, average invested assets of $1.950,000, and a hurdle rate of 10 percent o s retum on investment (ROI), investment turmover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROl and Profit imat places. (i.e., 0.1234 should be entered as 12.34%). Round your investment Turnover answer to 4 decimal places) Retum on Investment Investment Turnover Profit Margin Residual Income (Loss) 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROl and residual Income. (Note: Treat each scenario independently.) (Enter your Roi percentage answers to 2 decimal places, (le. 01234 should be entered is 1234% a. Company sales and cost of goods sold increase by 40 percent Return on Investment Residual Income (Loss) b. Operating expenses decrease by $16,500. Return on Investment Residual Income (Loss)

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