[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	$	9,620,000
Net operating income	$	1,058,200
Average operating assets	$	3,700,000

References

Section BreakExercise 9-13 Effects of Changes in Sales, Expenses, and Assets on ROI [LO9-1]

3.

value: 3.75 points

Required information

Exercise 9-13 Part 1

Required:
1.	Compute the company's margin, turnover and return on investment (ROI). (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

References

eBook & Resources

WorksheetDifficulty: 2 Medium

Exercise 9-13 Part 1Learning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

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4.

value: 3.75 points

Required information

Exercise 9-13 Part 2

2.	The entrepreneur who founded the company is convinced that sales will increase next year by 160% and that net operating income will increase by 420%, with no increase in average operating assets. What would be the companys ROI? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

References

eBook & Resources

WorksheetDifficulty: 2 Medium

Exercise 9-13 Part 2Learning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

5.

value: 3.75 points

Required information

Exercise 9-13 Part 3

3.

The Chief Financial Officer of the company believes a more realistic scenario would be a $4,000,000 increase in sales, requiring a $840,000 increase in average operating assets, with a resulting $610,250 increase in net operating income. What would be the companys ROI in this scenario? (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

References

eBook & Resources

WorksheetDifficulty: 2 Medium

Exercise 9-13 Part 3