CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4, 500, 000 Net operating income Average operating assets %24 270, 000 %24 900, 000 The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,750,000 increase in sales, requiring a $350,000 increase in average operating assets, with a resulting $401,875 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %OSS

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Sales
Net operating income
Average operating assets
$ 4,500,000
270,000
900, 000
2$
The following questions are to be considered independently.
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,750,000 increase in sales, requiring a
$350,000 increase in average operating assets, with a resulting $401,875 increase in net operating income. What would be the
company's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Return on investment (ROI)
Transcribed Image Text:Required information [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 Net operating income Average operating assets $ 4,500,000 270,000 900, 000 2$ The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,750,000 increase in sales, requiring a $350,000 increase in average operating assets, with a resulting $401,875 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI)
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