CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:       Sales $ 4,300,000 Net operating income $ 301,000 Average operating assets $ 860,000   The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 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.)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...
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CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:

     
Sales $ 4,300,000
Net operating income $ 301,000
Average operating assets $ 860,000
 

The following questions are to be considered independently.

3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 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.)

 

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:
$ 4,300,000
Sales
Net operating income
Average operating assets
$
301,000
860,000
The following questions are to be considered independently.
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000
increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875
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: $ 4,300,000 Sales Net operating income Average operating assets $ 301,000 860,000 The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,550,000 increase in sales, requiring a $310,000 increase in average operating assets, with a resulting $444,875 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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