CommercialServices.com Corporation provides business-to-business services on the
ID: 2476674 • Letter: C
Question
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
6.
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).)
7.
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 company’s 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).)
8.
The Chief Financial Officer of the company believes a more realistic scenario would be a $3,000,000 increase in sales, requiring a $1,020,000 increase in average operating assets, with a resulting $671,760 increase in net operating income. What would be the company’s 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).)
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
Explanation / Answer
Commercial Services.com Current Situation 6 Details Amt $ a Sales 11,880,000 b Net Opearting Income 1,069,200 c Margin =b/a= 9.00% d Average Operating Assets 2,700,000 e Turnover =a/d= 4.40 f ROI % =Margin *Turnover = 39.60% 7 Given details Details Amt $ a Sales 19,008,000 b Net Opearting Income 4,490,640 c Margin =b/a= 23.63% d Average Operating Assets 2,700,000 e Turnover =a/d= 7.04 f ROI % =Margin *Turnover = 166.32% 8 Given details Details Amt $ a Sales 14,880,000 b Net Opearting Income 1,740,960 c Margin =b/a= 11.70% d Average Operating Assets 3,720,000 e Turnover =a/d= 4.00 f ROI % =Margin *Turnover = 46.80%