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[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:

[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 $ 16,100,000
Net operating income $ 1,271,900
Average operating assets $ 4,600,000

value: 1.50 points

Required information

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).)

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eBook & Resources

WorksheetDifficulty: 2 MediumLearning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

value: 1.50 points

Required information

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? (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 MediumLearning Objective: 09-01 Compute return on investment (ROI) and show how changes in sales, expenses, and assets affect ROI.

Check my work

value: 1.50 points

Required information

3.

The Chief Financial Officer of the company believes a more realistic scenario would be a $4,000,000 increase in sales, requiring a $1,681,250 increase in average operating assets, with a resulting $657,700 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).)

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