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Question: of A company has sales of $21,420,000, a net operating income of $1,799,280 and average operating assets $5,100,000. The chief financial officer of the company believes that there would be a $6.0 million increase in sales, requiring a $1,755,000 increase in average operating assets, with a resulting $997,560 increase in net operating income. What would be the company's ROI in this scenario?

Question: of A company has sales of $21,420,000, a net operating income of $1,799,280 and average operating assets $5,100,000. The chief financial officer of the company believes that there would be a $6.0 million increase in sales, requiring a $1,755,000 increase in average operating assets, with a resulting $997,560 increase in net operating income. What would be the company's ROI in this scenario?

FINANCIAL ACCOUNTING
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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Question: of A company has sales of $21,420,000, a net operating income of $1,799,280 and average operating assets $5,100,000. The chief financial officer of the company believes that there would be a $6.0 million increase in sales, requiring a $1,755,000 increase in average operating assets, with a resulting $997,560 increase in net operating income. What would be the company's ROI in this scenario?
Transcribed Image Text:Question: of A company has sales of $21,420,000, a net operating income of $1,799,280 and average operating assets $5,100,000. The chief financial officer of the company believes that there would be a $6.0 million increase in sales, requiring a $1,755,000 increase in average operating assets, with a resulting $997,560 increase in net operating income. What would be the company's ROI in this scenario?
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