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Solano Company has sales of $860,000, cost of goods sold of $550,000, other operating expenses of $50,000, average invested assets of $2,500,000, and a hurdle

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Solano Company has sales of $860,000, cost of goods sold of $550,000, other operating expenses of $50,000, average invested assets of $2,500,000, and a hurdle rate of 12 percent Required: 1. Determine Solano's return on investment (ROI), Investment tumover, profit margin, and residual income. (Do not round your intermediate caleuletions. Enter your ROl and Profit Margin pere to the nearest 2 decimal places , 0.1234 should be entered as 1234%) Round your Investment lumover answer to decinal places) Retun on Investment Incesiment Tumover Prol Residual Inoome (Loss) Margin 2. Several possible changes that Soiano could face in the upooming year follow Determine each sonano's mpact on Solane's ROi and residual income (Nce: Treat each scenario independenty )(Ente percentage anawers to 2 decmal piaces, (le., 0.1234 should be etered as 12 Company sales and cost of goods sold inorease by 30 percens Return on mestment tcoe Loss)

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