Solano Company has sales of $840,000, cost of goods sold of $540,000 other operating expenses of $70.000, average Invested assets of $2.450,000, and a hurdle rate of 11 percent Required: 1. Determine Solano's return on investment (ROI), Investment turnover profit margin, and residual income 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's Impact on Solano's ROI and residual income. (Note: Treat each scenario Independently.) a. Company sales and cost of goods sold increase by 40 percent b. Operating expenses decrease by $12,000 c. Operating expenses increase by 10 percent, d. Average invested assets increase by $470,000 . Solano changes its hurdle rate to 17 percent Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 26 Reg 2c Reg 20 Reg 2 Several possible changes that Solano could face in the upcoming year follow Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Operating expenses increase by 10 percent. (Los amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, ie, 0.1234 should be entered as 12.34%.)) Show less Return on investment Residual income (LOS) pepeses decrease by $12.000 c. Operating expenses increase by 10 percent d. Average invested assets increase by $470.000 e. Solano changes its hurdle rate to 17 percent. Complete this question by entering your answers in the tabs below. Reg1 Req 2A Reg 28 Reg 20 Reg 20 Reg 2 Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Average invested assets increase by $470,000.00 amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, (1.0, 0.1234 should be entered as 12.34%.)) Show less Return on Investment Residual income (Loss) Required: 1. Determine Solano's return on investment (ROI), investment turnover, profit margin, and residual income. 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.) a. Company sales and cost of goods sold increase by 40 percent. b. Operating expenses decrease by $12,000. c. Operating expenses increase by 10 percent. d. Average Invested assets increase by $470,000 e. Sotano changes its hurdle rate to 17 percent. Complete this question by entering your answers in the tabs below. Req1 Reg 2A Reg 28 Reg 20 Reg 2D Reg 2 Several possible changes that Solano could face in the upcoming year follow. Determine each scenario's impact on Solano's ROI and residual income. (Note: Treat each scenario independently.) Solano changes its hurdle rate to 17 percent. (LOSS amounts should be indicated with a minus sign. Enter your ROI percentage answer to 2 decimal places, le., 0.1234 should be entered as 12.34%)) Show less % Return on Investment Residual Income (Loss)
