[The following information applies to the questions displayed below.]

BusServ.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:

Sales	$	21,420,000
Net operating income	$	1,799,280
Average operating assets	$	5,100,000

References

Section BreakExercise 11-6 Effects of Changes in Sales, Expenses, and Assets on ROI [LO1]

2.

value: 5.00 points

Required information

Exercise 11-6 Part 1

Required:
1.	Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

ROI

%

References

eBook & Resources

WorksheetDifficulty: Easy

Exercise 11-6 Part 1Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

3.

value: 5.00 points

Required information

Exercise 11-6 Part 2

2.

The entrepreneur who founded the company is convinced that sales will increase next year by 150% and that net operating income will increase by 400%, with no increase in average operating assets. What would be the companys ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

ROI

%

References

eBook & Resources

WorksheetDifficulty: Easy

Exercise 11-6 Part 2Learning Objective: 11-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

4.

value: 5.00 points

Required information

Exercise 11-6 Part 3

3.

The Chief Financial Officer of the company believes a more realistic scenario would be a $6.0 million increase in sales, requiring an $1,755,000 increase in average operating assets, with a resulting $997,560 increase in net operating income. What would be the companys ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

ROI

%