CommercialServices.com Corporation provides business-to-business services on the

Question

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

2. The entrepreneur who founded the company is convinced that sales will increase next year by 40% and that net operating income will increase by 250%, with no increase in average operating assets. What would be the company’s ROI? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Return on investment (ROI)% _____

Sales $ 4,700,000 Net operating income $ 188,000 Average operating assets $ 940,000

Explanation / Answer

ROI = Net Operating Income / Average Operating Assets

= $ 658,000 / $ 940,000

= 0.70

= 70%

Hence the correct answer is 70.00%

Note :

Current Predicted Sales $ 47,00,000 65,80,000 Net operating income $ 1,88,000 658,000 Average operating assets $ 9,40,000 9,40,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---